FRANKFURT AM MAIN, (MILLAT/APP/AFP) – German business
confidence rose to its highest level in more than five and a half years in March, a regular survey showed Monday, beating analysts’ forecasts for a slight decline.
The Ifo institute’s closely-watched business climate index improved
in March, adding 1.2 points to reach 112.3 points, the highest level since July 2011.
“The upswing in the German economy is gaining impetus,” commented Ifo
president Clemens Fuest.
The March increase in confidence surprised observers of the German
economy, as analysts surveyed by Factset had forecast a slight slip in the survey result.
Ifo’s headline figure is based on a survey of some 7,000 businesses
which are asked about the current climate and their expectations for the next six months.
The sub-indices covering the present economic situation and
expectations both rose, as businesses shook off gloom about rising inflation and political uncertainty that had clouded readings earlier in the year.
“No-one was expecting such a sharp rise” in business confidence,
analyst Uwe Burkert at LBBW bank commented.
“Anxieties about Brexit, Trump and the upcoming elections in France
appear to have been dispelled.”
However, “this lack of concern seems to me somewhat overblown,” he
cautioned.