MUNICH: In the wake of last month's plunge in German business confidence, eyebrows hit hairlines at an unexpected surge of optimism which boosted the Ifo Business Confidence Index reading for May – up from 102.4 in April to 103.5 points.
The monthly index, based on the sentiments of 7,000 German business executives, showed that sentiment in the manufacturing sector had improved.
According to Ifo president Hans-Werner Sinn, the upturn in optimism reflected both the current position and respondents' predictions for the coming six months.
German annual consumer inflation reached 2.6% in April, after surging to a twelve-year high of 3.3 percent in March. The official inflation target for the Eurozone as a whole is just under 2%.
Data sourced from Deutsche Welle (Germany); additional content by WARC staff