Hopes of a second-half economic recovery in Germany have been boosted by a fourth consecutive monthly rise in business sentiment.
The west German business climate index from the Ifo economics institute climbed from 89.3 last month to an August reading of 90.8, ahead of economists’ expectations and well above April’s nadir of 86.7.
According to Ifo’s Gernot Nerb, the rise reflects improved manufacturing as well as upturns in personal consumption and private investment. The economy has been aided by the falling value of the euro and the recovery in the US.
The business expectations component of the index rose from 100.2 in July to 102.1. This remains much stronger than the current conditions gauge, which climbed from 78.7 to 79.9.
Data sourced from: The Wall Street Journal Online; additional content by WARC staff