Sunday, July 13, 2014





German business confidence up more than expected


February 19. 2013 10:46PM
Story Tools
PrintPrint | E-MailEMail | SaveSave | Hear Generate QR Code QR
Send to Kindle


(AP) A key measure of German business optimism rose slightly more than expected in December, suggesting Europe's largest economy will avoid a recession despite a recent slowdown in growth.


The Ifo institute said Wednesday that its main index rose to 102.4 from 101.4 the month before. The consensus expectation among market analysts was 102.0


The survey is a leading indicator, suggesting where the economy may be going in the months ahead. It's based on a poll of 7,000 business executives about how they see things now and six months from now.


Their views about current conditions darkened, suggesting that the fourth quarter may see the economy shrink slightly. But that was outweighed by brighter expectations for the future, suggesting that an outright recession, defined as two straight quarters of falling output, is unlikely.


The German economy grew only a modest 0.2 percent in the third quarter from the previous three-month period, down from 0.3 percent the quarter before.


Many economists think it will skirt with recession before growth improves next year.


Economist Alexander Koch at UniCredit is predicting a 0.2 percent quarterly contraction in the fourth quarter, but noted that the Ifo results signal the end of contraction and that growth would strengthen next year.


Christian Schulz, senior economist at Berenberg Bank, said the brighter outlook would help growth as companies spend to expand production in anticipation of more business.


The confidence rebound should continue, gradually feeding through to GDP growth as companies start investing again, Schulz said.


Associated Press


Comments
comments powered by Disqus Commenting Guidelines
Poll
Mortgage Minute


Search for New & Used Cars

Make 
Model
 
Used New All
 

Search Times Leader Classifieds to find just the home you want!

Search Times Leader Classifieds to find just what you need!

Search Pet Classifieds
Dogs Cats Other Animals



Social Media/RSS
Times Leader on Twitter
Times Leader on Youtube
Times Leader on Google+
The Times Leader on Tumblr
The Times Leader on Pinterest
Times Leader RSS Feeds