empty
 
 

2017.11.2407:14:00UTC+00German Business Confidence At Record High

Germany's business confidence strengthened to a new record in November on optimistic expectations, suggesting another strong quarter for the economy.

The business climate index rose to 117.5 in November from a revised 116.8 in October, survey data published by the Ifo Institute showed Friday. The score was forecast to remain at October's initially estimated value of 116.7.

However, companies' assessment of the current business situation were no longer as positive as in October. The current situation index dropped to 124.4 from 124.8 a month ago.

The expectations index climbed to 111.0 in November from 109.2 in the previous month.

Ifo President Clemens Fuest said the German economy is on track for a boom. The latest figures indicate economic growth of 0.7 percent in the fourth quarter, pointing to growth of 2.3 percent for 2017 as a whole.

The largest euro area economy expanded at a faster pace of 0.8 percent in the third quarter on robust foreign demand and investment.

Fuelled by extremely low European Central Bank interest rates, the German economy will continue growing strongly, although it is likely that the grand coalition which is starting to emerge would further unwind the Agenda 2010 reforms, Joerg Kraemer, a Commerzbank analyst, said.

The survey showed that, in manufacturing, business confidence rose to a fresh record thanks to far more optimistic expectations. But, they scaled back assessments of their current business situation.

In wholesaling, the business climate index improved markedly as wholesalers were more satisfied with their current situation and expect businesses to pick up further over the next six months.

However, business climate in retail segment deteriorated in November. Retailers' assessments of their current business situation were far poorer but they expressed greater optimism about the next six months.

Likewise, business climate in construction decreased in November. Contractors scaled back assessments of both their current business situation and their expectations.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback