Germany: Business confidence rises for third straight month
July 25, 2013
The business confidence index published by the Ifo Institute reached its highest level since March, rising to 106.2 points in July (June: 105.9 points). This figure is in line with market expectations of 106.1 points and marks the third consecutive month of improvement.
The result primarily showed that businesses are more optimistic about current business situation, while respondents to the July survey showed slightly less optimism about their business prospects for the next six months. According to the Ifo Institute, "conditions in the German economy remain fair."
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