German business confidence at all time high

| February 22, 2011 | 0 Comments

The Munich-based Ifo think tank has announced confidence among German firms rose in February to another record high.

The closely-watched Business Climate Index climbed to 111.2 in February, up from 110.3 in January - the ninth consecutive monthly increase and the highest reading for the former West Germany since 1969.

The results confounded analysts expectations since the recent severe wintry weather was expected to knock the index.

Ifo surveys around 7,000 German manufacturing, construction, wholesale and retail companies each month.

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.

Germany is driving the recovery in the euro zone and economic growth of 2.3% is expected this year.

For the 2010 year, Germany posted growth of 3.6% – the strongest pace since reunification in 1990, the Federal Statistical Office said last month.

In related news, euro zone manufacturing and service activity rose to a level not seen since July 2006.

The purchasing manager’s index (PMI) rose from 57.0 points to 58.4 points in February - suggesting the 17-member nation may be over the worst of its crisis, according to analysts.

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