- Andreas Scheuerle, DekaBank economist
German business morale improved in November, reaching the highest level since summer 2014. Ifo's business climate index rose to 109.0 from 108.2 in October, the strongest reading since June 2014. The current assessment sub-index, which measures the current conditions in the Euro zone's number one economy, climbed to 113.4 points, compared with the previous month's figure of 112.7 and beating market estimates of 112.4 points. The Ifo expectations index, showing firms' projections for the next six months, increased to 104.7, up from 103.9 in October.
The unexpectedly strong business climate reading by the Ifo economic institute came after the data showed the German economy slowed in the third quarter, as robust domestic consumption was offset by sluggish exports and slack corporate investment. Germany's third quarter GDP growth eased to 0.3% from 0.4% in the June quarter, according to the Federal Statistics Office. This translated into an annualized growth rate of 1.3%, the weakest rate since the third quarter last year. Private consumption rose 0.6% from the second quarter, while government consumption increased 1.3%. At the same time, exports climbed a modest 0.2%, whereas imports jumped 1.1%.
© Dukascopy Bank SA