German Business Confidence Rises to Record LevelsFeb 21st, 2011 | By Roy Rasmussen | Category: Business and Finance
German business confidence rose to record levels in February, reaching numbers that have not been seen since 2006, Germany’s Ifo Institute for Economic Research announced Monday, reporting on the results of its February Business Survey. Ifo president Hans-Werner Sinn happily announced this as evidence that “The upswing in the German economy is robust.”
The Ifo index hit a record 111.2 points in February. This is the ninth consecutive time that Ifo’s report has recorded an improvement in German industry and trade. More companies have reported a better situation than in the previous month and a better outlook for the coming six months.
Manufacturing firms again report an improved business climate. Their current situation has improvement, and their expectations are positive with a slight downward adjustment.
Exporting firms anticipate stronger demand from foreign consumers, and plan to increase staff numbers.
Wholesalers’ outlooks for the next six months were higher than in January.
Construction companies report greater satisfaction with their current situation. Their expectations for the next six months are slightly less optimistic than in the previous survey.
Retailing confidence is lagging behind that of other sectors of the economy. Retailers are not quite as satisfied with their present situation as in the previous survey. However their outlook for future business has improved.
Ifo’s Business Climate Index is based on about 7,000 monthly survey responses from companies in manufacturing, construction, wholesaling, and retailing. Survey participants are asked to give their assessments of their current business situation and their outlook for the next six months.