The Outlook for the German economy have improved in March as a surprise. As the Munich-based Ifo Institute announced that rose the collected business climate by 0.9 points to 99.6 counter and thus recorded the first increase after six consecutive declines.
“The German economy resist the downturn,” said Ifo President Clemens Fuest the new Numbers. Accordingly, the managers assessed both their current business situation as better as well as the prospects for the coming six months. This is especially true for the service sector, trade and construction industry. In manufacturing, however, the mood deteriorated again, and the expectations fell to the lowest level since November 2012.
“A big surprise” – “A good sign”
last Friday’s disappointing economic data from Germany and France in recession stoked concerns. For the more pessimistic statements in the Executive of the local economy, the weakening of the world resulted in the last economic recovery, uncertainty as to the Brexit and the threat of punitive US tariffs on German cars. The economy had halved therefore, your forecast for the growth of the German gross domestic product this year to 0.8 percent.
The Ifo business climate index is considered the most important mood barometer for the German economy. For this purpose, about 9,000 executives and managers are surveyed monthly. The indicator also applies, therefore, as a good proxy for future economic growth.
In a first reaction showed Economists and anal most cautiously optimistic. “The German companies are regaining confidence,” summed up about Michael Holstein, DZ Bank, the current Index is primarily a “good sign that the local economy begins after the weak second half of the year 2018”. His colleague Jörg Zeuner, the KfW is not, however, “a sign of hope – but”. And Andreas Rees, an employee of Unicredit, speaks of a “giant surprise”, but warns also against premature jubilation: “Now is not the time yet, to speak of a cyclical turning point”.
In the financial markets, the response was initially positive. The leading German index, the Dax, gained slightly. Also, the Euro rose slightly.