Ger­man busi­ness con­fi­dence soars

The Myanmar Times - - International Business -

GER­MAN busi­ness con­fi­dence im­proved sig­nif­i­cantly in Septem­ber, re­cov­er­ing from a post-Brexit slump a month ear­lier and sug­gest­ing a more pos­i­tive out­look for Europe’s largest econ­omy.

The closely watched busi­ness cli­mate in­dex jumped to 109.5 points from 106.3 points in Au­gust, the Ifo eco­nomic in­sti­tute said.

The Ifo said the Septem­ber read­ing was the high­est since May 2014. “The Ger­man econ­omy is ex­pect­ing a golden au­tumn,” it said.

An­a­lysts sur­veyed by Fac­tset had pre­dicted the mood to stay un­changed.

The fig­ure is all the more sur­pris­ing af­ter the in­dex suf­fered a steep fall in Au­gust, when Ifo said the Ger­man econ­omy had fallen into “a sum­mer slump” as com­pa­nies wor­ried about the fall­out from Bri­tain’s de­ci­sion to leave the Euro­pean Union.

“The Ifo in­dex sug­gests that Brexit fears have dis­ap­peared as quickly as they had emerged,” said Carsten Brzeski, chief economist at ING Diba.

Ifo’s head­line fig­ure is based on a sur­vey of some 7000 busi­nesses who are asked about the cur­rent cli­mate and their ex­pec­ta­tions for the next six months.

Within the in­dex, cur­rent busi­ness sen­ti­ment climbed from just un­der 113 points in Au­gust to 114.7.

Con­fi­dence in the fu­ture out­look soared from 100.1 points to 104.5.

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