Germany: Business confidence rises to eight-month high
March 26, 2012
In March, the business confidence indicator published by the Ifo Institute inched up to 109.8 points from a revised 109.7 points in February (previously reported: 109.6 points). The reading overshot market expectations, which had the index at 109.6 points. As a result of the improvement, the index now sits at its highest level since July 2011. The March reading showed that firms were slightly more optimistic about their expectations for the next six months, with the corresponding sub-indicator advancing to 102.7 points, the highest level in eight months. Meanwhile, businesses' current situation remained unchanged over the previous month, with the sub-index sitting at 117.4 points. Despite the improvement, the Ifo Institute acknowledged that the German economy is losing some of its momentum.
Author: Ricardo Aceves, Senior Economist