German business confidence rises to new high

Posted on Dec 21, 2010 in AllEconomic News
German business confidence rose to a new high in December, reaching the highest level since reunification, the Ifo Institute reported Friday.

The monthly Ifo business climate index reached 109.9 points, up from 109.3 in November, ignoring the risks that the financial crisis in Ireland and Greece may spread to other parts of the euro zone.

“The Ifo Business Climate for industry and trade in Germany has shown renewed improvement in December from an already high level. In the course of the entire year 2010, the business climate index has risen sharply,” said Hans-Werner Sinn, pesident of the Muncih-based institute.

The rise of the index was attributed to retailing and wholesaling, with relative data reaching 24.0 and 26.2 separately.

Th optimistic business mood echoed the strong economic surge in Germany in 2010, which was expected to grow 3.6 percent, according to the prediction of the German central bank. That is the strongest pace since German reunification.

The Ifo institute published its business climate index every month, based on about 7,000 survey responses of firms in manufacturing, construction, wholesaling and retailing.

German business confidence rises to new high – People’s Daily Online.