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- German IFO Business Climate Index rises more than forecasts in December
German IFO Business Climate Index rises more than forecasts in December
According to the report from Ifo Institute for Economic Research, German business morale rose more than expected in December, in a further sign that a manufacturing crisis in Europe’s largest economy could be bottoming out after overall output shrank earlier in the year.
The headline German Business Climate Index came in at 96.3 in December, firmer than last month's 95.0 and bettering the consensus (95.5). Meanwhile, the Current Economic Assessment arrived at 98.8 points in the reported month as compared to last month's 97.9 and 98.1 anticipated. On the other hand, the IFO Expectations Index – indicating firms’ projections for the next six months, came in at 93.8 for Dec, up from previous month’s 92.1 reading and beat market expectations of 93.0
Comments by Ifo economist, Klaus Wohlrabe:
German industrial sector is still in recession, will take a while to get out of it
German economy is heading into the new year with more confidence
There are signs that US-China trade conflict is easing, German exporters are pleased about that
German GDP likely increased by 0.2% in Q4.
Election result in Britain ensures there is more clarity around Brexit, that should also reduce uncertainty
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