Advertisement
Advertisement

German Business Confidence Improves Says Major Survey

By:
Peter Taberner
Updated: May 25, 2016, 13:18 UTC

The influential IFO institute has said that in their latest monthly survey, that there is optimism in all four main sectors of the German economy. The

German business sector positive in IFO survey

The influential IFO institute has said that in their latest monthly survey, that there is optimism in all four main sectors of the German economy.

The Business Climate Index rose in May to 107.7 from 106.7 in April, as enterprises said that they are more secure in their current position.

In manufacturing, the business climate has improved for the third consecutive month, and they also anticipate that in the future there will be potential to expand their companies, and create more employment.

A large part of the sentiment within the sector, came from capital goods manufacturers, building such projects as office buildings, equipment, and designing machinery.

In wholesale and retail trade, the survey concluded found that sentiment has risen again, after declining in last month’s survey.

Expectations for the future in both sectors also improved, especially in wholesale trade, whereas retailers were particularly more satisfied with their current business situation.

The most impressive results was in the construction industry, which recorded its highest score in the Munich based institutions survey since 1991.

Additionally, there was a similar level of enthusiasm over the outlook for  construction, as many fresh projects are expected.

Euro Gives Up Gains Made

The euro has acceded ground on the EUR/GBP rate, as it fell by 1.6% against sterling, and is currently buying £.0.76.

Recent opinion polls have shifted in favour or remaining in the European Union, which has proven to be a boost to the pound.

Against the US dollar, the euro has also fallen, with EUR/USD buying $1,11, from purchasing  over $1.12 in the early hours yesterday.

FC Exchange analyst Daniel Wray wrote in his daily report over the euro‘s fortunes, and pointed to the poorer than expected results in Germany’s ZEW economic sentiment survey, where the figure was 6.4 as opposed to 12.1, which came as a major shock.

More positively, Greece has managed to secure an initial deal to restructure their debt payments, with the help of the IMF.

The deal could see Greece receive a further 10.3 billion euros next month to keep them afloat.

Wray did warn that their might be stumbling blocks still to come, with Germany wary of making any major decisions on this issue, before their federal elections next year.

Spain Business Turnover Increases

Official figures have revealed that the business turnover index in Spain has risen by 1.2% in March, compared to the previous month.

The annual rate in the survey reported more positive news, as the index spiralled upwards by 2.1%.

There was less encouraging figures on the industrial price index, as for April year on year prices fell by a significant 6.1%, this was 0.5% less than the figure recorded for March.

The month on months data, showed that prices had eased by a slower pace of 0.1%.

The latest GDP figures has placed growth in Spain at 0.8% for the first quarter this year, which was consistent with the previous two quarters.

Whereas deflation has remained a chronic problem in Spain, as a positive price index has not been posted since July last year, inflation is currently pegged at minus 1.1%.

About the Author

Did you find this article useful?

Advertisement