Share

German business confidence highest since 2011

Frankfurt - German business sentiment rose to the strongest level in almost six years in a sign that the momentum in Europe’s largest economy is set to continue.

The Munich-based Ifo institute’s business climate index increased to 112.9 in April from a revised 112.4 in March. That compares with a median estimate of 112.4 in a Bloomberg survey of economists.

The economy expanded at the fastest pace in five years in 2016, and reports since then have underlined expectations for a continued robust performance. The nation’s strength is key to the euro area’s recovery as the European Central Bank, which meets to set policy on Thursday, edges toward a decision on when to unwind its extraordinary stimulus.

"This may strengthen calls for monetary policy normalization from Germany," Jennifer McKeown, chief European economist at Capital Economics in London, said in a note. "But with underlying inflation still weak in the euro zone as a whole, we doubt that the ECB will be swayed."

Ifo’s measure of current economic conditions in Germany improved to 121.1 in April from a revised 119.5. A gauge of expectations fell to 105.2 from 105.7.

The readings follow a report on Friday that showed private-sector output in Germany decelerated more than expected in April amid a softer expansion in the service sector.

The Bundesbank is scheduled to publish its assessment of the nation’s economic outlook at 12 Frankfurt time.

Political risks have hung over the euro area in recent weeks, including the French presidential election in which the National Front’s Marine Le Pen campaigned on a pledge to withdraw from the single currency.

Tensions eased after the first round on Sunday which showed that Le Pen will face a runoff against Emmanuel Macron, a centrist who is expected to defeat her. Germany holds elections in September.

Read Fin24's top stories trending on Twitter:
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.92
+0.1%
Rand - Pound
23.87
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.32
+0.1%
Rand - Yen
0.13
+0.1%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders