German business confidence at all time high
The Munich-based Ifo think tank today announced confidence among German firms rose in January to another record high.
The closely-watched Business Climate Index rose to 110.3 in January, up from 109.8 in December – the eight consecutive monthly increase.
It also represented the second straight record high since the country’s reunification in 1990 and slightly beat expectations of a reading of 110.
Ifo surveys around 7,000 German manufacturing, construction, wholesale and retail companies each month.
Commenting, Ifo president Hans-Werner Sinn said: “The firms are just as satisfied with their current business as they were in December, and they have given more favourable assessments of their business prospects for the coming half year.”
The closely-watched expectations index also rose to a record 107.8 in January, from 106.8 in December – again beating expectations for a 106.5 reading.
Earlier this week, Europe’s powerhouse said it is expected to see growth of 2.3% for 2011, as domestic demand is expected to strengthen.
Germany, which is Europe’s largest economy, will grow much faster in 2011, the Government said, with the latest forecast much higher than the 1.8% estimated in October.
Despite the ongoing problems in the euro zone as the debt crisis threatens weaker economies, Germany continues to surge ahead and lead the recovery in Europe.
Last week, Germany posted growth of 3.6% in 2010 – the strongest pace since reunification in 1990, the Federal Statistical Office said.
Export demand helped to bring Germany out of recession in the second quarter of 2009 – much sooner than many of its counterparts throughout the world.