Business confidence in Germany increased in November

The Munich-based Institute for Economic Research (Ifo) published the results of the German business environment confidence index for November, in which approximately 9,000 companies participated.

Consequently, the business environment confidence index for industry and commerce, which was 86.9 points in October, increased to 87.3 points this month. The market expectation was that the index would rise to 87.5 points.

The figures marked the third consecutive monthly increase in the most important economic barometer of the German economy, easing fears of a recession in the German economy.

During this period, the Ifo expectations index in Germany increased from 84.82 to 85.2 points and the current situation index increased from 89.2 to 89.4 points.

CONTRACTION IS EXPECTED

Ifo president Clemens Fuest said sentiment in German companies about the economy has improved, saying: “Companies have assessed their current business situation a little better. Pessimism about expectations for the coming months has also decreased. “The German economy is stabilizing at a low level.” he said.

Commerzbank chief economist Jörg Kramer also stated that he still expects the German economy to contract slightly in the middle of winter and emphasized that the recovery in global interest rates or uncertainty over the energy and budget policy of the German federal government can affect companies.

The German Central Bank (Bundesbank) expects the economy to contract in the fourth quarter due to weak external demand and the fallout from last year’s energy price shock that slowed production. (AA)