The German economy may be on the mend after a closely watched business barometer rose for the third month in succession.
Hopes of an upturn were boosted by the latest west German business climate index from the Ifo economic institute. The July reading stood at 89.2, up from 88.8 the month before.
Future expectations led the way: this component rose from 98.6 to 100.2, while the gauge of current conditions slipped from 79.4 to 78.7.
Following rises in June and May, the July figures bode well for Germany, and for the wider Eurozone of which it is the largest economy. According to Ifo economist Gernot Nerb, three consecutive increases herald a recovery around eight times out of ten.
“We are entering a turning point,” Nerb declared. “But a pickup is still very far away, from a situation that's not very strong.”
Data sourced from: The Wall Street Journal Online; additional content by WARC staff