• Germany's news in English

German firms hit 2.5-year confidence high

AFP · 24 Feb 2014, 12:39

Published: 24 Feb 2014 12:39 GMT+01:00

Facebook Twitter Google+ reddit
The Ifo economic institute's closely watched business climate index climbed to 111.3 points this month, the highest level since July 2011. In January, the index had stood at 110.6 points.
"The German economy is holding its own in a changeable global climate," Ifo chief Hans-Werner Sinn said in a statement.
Ifo calculates its headline index on the basis of companies' assessments of their current business and the outlook for the next six months.
It rose to 114.4 points in February from 112.4 points in January.
"German businesses remain diehard optimists," said ING DiBa economist Carsten Brzeski.
Gross domestic product data for the fourth quarter came in better than expected and further positive hard data are set to follow, Brzeski said.
"Of course, there are also risks," the expert noted, pointing to an unexpected slowdown, further emerging market turmoil and a Chinese hard landing.
But such concerns should disappear quickly, Brzeski believed.
Nataxis economist Johannes Gareis, too, felt that "all in all the German business climate remains more than upbeat, suggesting that Germany's business sector is on a growth course heading into 2014."
But Capital Economics economist Jonathan Loynes was more cautious.
"The survey has been consistently over-optimistic relative to the hard data over the last year or so, so its implications for growth should not be interpreted too literally," he said.
Story continues below…
"Overall, the Ifo survey supports the broader evidence suggesting that the German economy is expanding at a steady but unspectacular pace," Loynes argued.
Berenberg Bank economist Christian Schulz said that despite its apparent strength, the German economy "is not completely immune to the emerging market turbulences."
But "fortunately, Germany can rely on domestic demand as the key driver of growth at the current stage of the cycle. Private investment is rebounding after a long period of decline. And the Ifo index reassuringly points to strength in another key component of domestic demand, namely consumption," he said.

For more news from Germany, join us on Facebook and Twitter.

Facebook Twitter Google+ reddit

Your comments about this article

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