Germany: Business confidence climbs to highest level in 16 months
August 27, 2013
The business confidence index published by the Ifo Institute hit its highest level since April 2012, reaching 107.5 points in August (July: 106.2 points). The reading slightly overshot market expectations of 107.0 points and marks the fourth consecutive month of improvement.
In the August survey, businesses' views on their current conditions rose to a 14-month high. In addition, firms showed more optimism regarding business prospects in the coming six months. According to the Ifo Institute, "the German economy moved up a gear."
FocusEconomics Consensus Forecast panellists expect gross fixed investment to increase 0.2% in 2013, which is down 0.2 percentage points from last month's forecast. Next year, the panel sees investment growth accelerating to 3.7%.
Author: Ricardo Aceves, Senior Economist