Germany: Business confidence recovers after six consecutive falls
November 23, 2012
Business confidence improved, on the back of firms' less pessimistic assessment about future business prospects. The November business confidence indicator, published by the Ifo Institute, rose to 101.4 points from the 100 points recorded in October, which had marked the lowest level seen in two-and-a-half years. The reading also surprised market expectations, which had predicted the index falling further to 99.5 points. The monthly improvement reflected businesses' more optimistic assessment about their current business situation. In addition, firms' economic prospects for the next six months increased over the previous month, reflecting businesses' less pessimistic view about their future business environment. According to Ifo, "the German economy is holding up in the face of the euro crisis".
Author: Ricardo Aceves, Senior Economist