• Germany's news in English

New data highlights economy's resiliency

The Local · 24 Sep 2010, 14:00

Published: 24 Sep 2010 14:00 GMT+02:00

Facebook Twitter Google+ reddit

The Ifo economic research institute said its widely-watched business confidence index edged up to 106.8 points from 106.7 points in August.

The latest figures "reinforce the view that the German economy will prove quite resilient against any downward influences from a weakening global economy," IHS Global Insight senior economist Timo Klein said.

The index had been expected to slip to 106.5 points, according to analysts polled by Dow Jones Newswires.

But "firms are again more satisfied with their business situation than in the previous month," Ifo president Hans-Werner Sinn said in a statement.

In the manufacturing sector, sentiment slipped slightly but retailers were more positive, with the current situation assessed to be at its best since the boom that followed German reunification in 1990.

The outlook also perked up in the construction sector, raising the overall reading to levels not seen since the global financial system was slammed by a meltdown of the US market for high risk mortgages in mid-2007.

"Double-dip fears are not shared by the company captains polled by the Ifo institute," Morgan Stanley counterpart Elga Bartsch said.

Klein explained that "for Germany, with a recovering labour market supporting private consumption, the dependence on exports and thus global demand growth is being reduced at present."

Ifo's report contrasted with gloomy news Thursday when data showed activity across the 16-nation eurozone hit a seven-month low in September, according to the purchasing managers' index (PMI) compiled by London-based data and research group Markit.

"The Ifo business climate is less influenced than the purchasing managers' index by factors such as the year-on-year trend for order intake and production ... earnings also play a significant role," Commerzbank economist Ralph Solveen said.

Ifo's forward looking expectations sub-index also dropped however.

The measure of business expectations for the next six months fell to 103.9 points in September from 105.2 points in August, suggesting the export-led economy will cool later this year in line with weaker activity abroad.

The Ifo institute surveys around 7,000 German manufacturing, construction, wholesale and retail companies each month to establish the widely-followed index of business sentiment.

Story continues below…

The German central bank and economists now expect full-year growth of at least 3.0 percent, probably surpassing advances elsewhere in the eurozone, and in Japan and the United States.

In October, the German government is expected to raise its official 2010 forecast of 1.4 percent growth.

UniCredit economist Alexander Koch was among the many who believe the economy will see slower growth later this year but not fall back into recession.

"Barring a global double-dip, the cooling down is not likely to turn into an outright downswing," he said.


The Local (news@thelocal.de)

Facebook Twitter Google+ reddit

Your comments about this article

06:20 September 26, 2010 by V07768198309

Credit Free Economy

More Jobs, No Debt, No Fear.

Prosperous, Fair and Stable.


Our economy is slowly dying, your job, lifestyle are dominated by anxiety.

The economy is kept alive artificially.

No one is proposing a solution because no one has the slightest idea of why it is happening and many have vested interest in the present system.

However an objective observation of the phenomenon can help us understand it and provide us with an innovative solution.

Of course we can't solve the problem with the tools that brought us there in the first place and we need a new ideology.


- Do you feel that your ideology pushed you to make decisions that you wish you had not made?

- Well, remember that what an ideology is, is a conceptual framework with the way people deal with reality. Everyone has one. You have to -- to exist, you need an ideology. The question is whether it is accurate or not. And what I'm saying to you is, yes, I found a flaw. I don't know how significant or permanent it is, but I've been very distressed by that fact.

- You found a flaw in the reality...(!!!???)

- Flaw in the model that I perceived is the critical functioning structure that defines how the world works, so to speak.

- In other words, you found that your view of the world, your ideology, was not right, it was not working?

- That is -- precisely. No, that's precisely the reason I was shocked, because I had been going for 40 years or more with very considerable evidence that it was working exceptionally well.


In order to alleviate those economic woes wee need to create, as fast as possible, a new credit free currency that will solve the credit crunch and bring incremental jobs, consumption and investments to the present system.

An Innovative Credit Free, Free Market, Post Crash Economy

A Tract on Monetary Reform

It is urgent if we want to limit social, political and military chaos.

Today's headlines
Creepy clown scare spreads to Germany
Two of the clowns were apparently equipped with chainsaws. Photo: Pedro Pardo / AFP file picture

Police said Friday five incidents involving so-called scary clowns had occurred in two north German town, including one assailant who hit a man with a baseball bat, amid fears that Halloween could spark a rash of similar attacks.

Student fined for spying on women via their webcams
Photo: DPA

Student from Munich fined €1,000 for spying on 32 different computers, using their webcams to take photographs, or record their keyboard history.

This is how much startup geeks earn in Germany
Photo: DPA

A comprehensive new survey of 143 startup founders shows how much you are likely to be earning at a German startup, from entry level all the way up to sitting on the board.

Man dies after beating for peeing near Freiburg church
The Johannes Church in Freiburg. Photo Jörgens Mi/Wikipedia

A middle-aged man from southern Germany has died after being attacked by a group of men who took umbrage with the fact he was urinating in the vicinity of a church.

The Local List
Seven German celebrities with uncanny doppelgängers
Former Berlin mayor Klaus Wowereit and actor Alec Baldwin. Photo: DPA; Gage Skidmore, Wikimedia Commons

Check out these seven look-a-likes of well known German figures - we admit that some are more tenuous than others...

Israel seeks to buy three new German submarines: report
A Dolphin class submarine. Photo: DPA

Israel is seeking to buy three more advanced submarines from Germany at a combined price of €1.2 billion, an Israeli newspaper reported Friday.

Here’s where people live the longest in Germany
Photo: DPA

Germans down south seem to know the secret to a long life.

More Germans identify as LGBT than in rest of Europe
Photo: DPA

The percentage of the German population which identifies as lesbian, gay, bisexual or transgender is higher than anywhere else in Europe, according to a new study.

'Reichsbürger' pair attack police in Saxony-Anhalt
File photo: DPA.

A "Reichsbürger" and his wife attacked police officers on Thursday, just a day after another Reichsbürger fatally shot an officer in Bavaria.

Five things not to miss at the Frankfurt Book Fair
Photo: DPA

From consulting a book doctor to immersing yourself in an author's world with the help of virtual reality, here are five things not to miss at this week's Frankfurt Book Fair, the world's largest publishing event.

Sponsored Article
How to vote absentee from abroad in the US elections
10 things you never knew about socialist East Germany
Sponsored Article
Last chance to vote absentee in the US elections
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
Sponsored Article
How to vote absentee from abroad in the US elections
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
Eleven famous Germans with surnames that'll make your sides split
The best ways to get a visa as an American in Germany
jobs available
Toytown Germany
Germany's English-speaking crowd