Germany: Business confidence remains fairly high in December
December 17, 2015
Confidence among German businesses remained fairly high in December, despite a slight moderation. The business confidence index, elaborated by the Ifo Institute, came in at 118.7 in December, which was down slightly from November’s 119.0, which had marked the highest reading in 17 months. December’s reading undershot market expectations of the index remaining at November’s level. According to the Institute, December’s slight drop reflects that firms grew slightly less confident about the current business situation, while their assessment of future business development remained unchanged. Overall, the Ifo Institute commented on December’s result stating that, “the economic situation could hardly be better in the run-up to Christmas.”
Sentiment continued to improve in manufacturing as manufacturers’ expectations on future business turned more positive and businesses increased planned production. Conversely, sentiment dropped at wholesalers as they were less positive about both current and future business conditions. Meanwhile, retailers grew more optimistic about future business development, while there were more negative about their current situation. Sentiment in the construction sector receded slightly from November’s record-high, but still remained at a fairly high level.