Germany: Business confidence rises for second consecutive month
December 19, 2012
Business confidence improved, buttressed by firms' more optimistic assessment about future business prospects. The December business climate index published by the Ifo Institute rose to 102.4 points in December from 101.4 points in November, which marked a second consecutive increase after the index had fallen to a two-and-a-half year low in October. The reading also overshot market expectations, which had the index rising to 102 points.
While businesses were less optimistic about their current business situation than last month, firms' economic prospects for the next six months improved, showing businesses less pessimistic assessment about the future business environment. According to Ifo, "as the year draws to a close, German companies are more confident about the future".
Author: Ricardo Aceves, Senior Economist