Germany: Businesses' confidence at four-month high in September
September 24, 2015
The business confidence index, elaborated by the Ifo Institute, came in at 108.5 in September, which was just above August’s 108.4. The reading overshot market expectations of a decrease to 108.0 and marked a four-month high.
According to the Institute, September’s result reflects that firms were slightly more optimistic about future business development. In contrast, businesses were somewhat less upbeat about the current situation. Regarding the different economic sectors, sentiment strengthened overall in the wholesaling sector and improved clearly for a third straight month in the retail sector. The business climate turned positive for the first time since January of last year in the construction industry. In contrast, business sentiment deteriorated again in the manufacturing sector. Manufacturers were less optimistic about the current situation but were slightly more positive about short-term business prospects. The view of the Ifo Institute is that September’s print suggests overall that, “the German economy is proving robust.”