Germany: Business confidence improves in June despite ongoing sovereign-debt crisis
June 24, 2011
Business confidence improved in June, despite Europe's worsening sovereign-debt crisis and the faltering global recovery caused by the Japanese crisis and cooling in the U.S. In June, the business confidence climate index published by the Ifo Institute inched up to 114.5 points from 114.2 points in May. The reading surprised private sector analysts on the upside, as they had seen the index falling to 113.4 points. Moreover, the index remains 8.0 points above the sentiment level observed in the same month last year and suggests that firms remain confident of an expanding economy. The June improvement reflected businesses' better assessment about their current situation, with the sub-index maintaining the upward trajectory and rising to the highest level on record. On the other hand, firms' future expectations declined for a fourth consecutive month.
Author: Ricardo Aceves, Senior Economist