German firms are optimistic
German business increasingly confident about economic recovery. Germany’s Dax share index also up.
Munich (dpa) - Sentiment in German business recovered in July for the third month in succession after having been muted as a result of the Iran war. The Munich-based research institute Ifo reports that its business climate index rose by 0.9 points to 86.6 points. “Despite the uncertain situation in the Persian Gulf, German companies are less pessimistic,” said Ifo President Clemens Fuest, commenting on the findings of the monthly survey of 9,000 businesses.
The indicator was bolstered by improved expectations of firms. The expectations index rose by 2.4 points to 86.7 points.
The business climate brightened once again in the service sector and trade, especially in the retail trade sector. The indicator likewise improved in the main construction sector.
“It is above all the latest reform decisions taken by the Federal Government that are likely to have boosted optimism among many companies”, commented Marc Schattenberg, an economist with Deutsche Bank.
The US suspension of its attacks in the war with Iran enabled the German stock market to get off to a buoyant start to the week. Helped by falling oil prices and a sharp rise in the share price of index heavyweight SAP, the Dax rose significantly above the 25,000 point mark on Monday.
