German biz morale hits record high: Ifo

- Agence France-Presse, FRANKFURT AM MAIN

Jan 26, 2018-

German business morale soared to a fresh record high in January, a closely-watched survey said on Thursday, as Europe’s humming top economy kicks off the new year brimming with confidence.

The Ifo economic institute’s business climate index jumped from last month’s 117.2 points to a historic 117.6 points, beating analyst expectations. “The German economy made a dynamic start to the year,” Ifo president Clemens Fuest said in a statement. 

Analysts surveyed by Factset had predicted the index would be unchanged from December, when sentiment dipped below November’s previous record of 117.5 points.

At the start of 2018 businesses were more optimistic about their current economic situation than last month, the survey of some 7,000 firms showed. Their expectations for the future however dropped slightly “but remain at a high level”, Ifo said.

The buoyant mood suggests company bosses are unfazed by the drawn-out efforts to forge a new coalition government in Berlin four months after inconclusive elections.

The latest Ifo reading sends “a strong signal that the current political impasse in Berlin has no impact on the economy at all,” said economist Carsten Brzeski of ING Diba bank.

“At the beginning of the new year, it’s all hunky-dory in the German economy,” he added.

The Ifo survey is in step with the bright mood seen among German shoppers, with a poll released by market research firm GfK earlier on Thursday forecasting that consumer confidence will inch upwards in February.

Other indicators on the German economic dashboard are also in the green.

Published: 26-01-2018 08:46

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