German business confidence at all time high
The Munich-based Ifo think tank today announced confidence among German firms rose in December to a record high.
The Business Climate Index rose to 109.9 in December, up from 109.3 the previous month.
Not only did the reading exceed expectations of 109.4, it represented the seventh consecutive increase.
The closely-watched expectations index also rose to a record level – edging up to 106.9, from 106.3 in November.
Ifo surveys around 7,000 German manufacturing, construction, wholesale and retail companies each month.
Meanwhile, commenting on the figures, the Ifo institute said: “In the course of the entire year 2010, the business climate index has risen sharply.
“Following an increase in exports, investment in particular has been responsible for the upswing and the outlook is now even good for consumption,” it added.
The surge in confidence comes as the country’s central bank estimates economic growth this year at 3.6% – the strongest pace since German reunification in 1990.
Export demand helped to bring Germany out of recession in the second quarter of last year – much sooner than many of its counterparts throughout the world.