Forex News

German business confidence surpasses expectations

German business confidence surpasses expectations

The Ifo business climate indicator in Germany came better than forecasts in August, raising hopes that Europe’s biggest economy is on the right recovery path.

The business morale gauge registered 92.6 in August, up from a revised of 90.4 in July. That was better than analysts’ projections of 92.5.

The current assessment measure came in at 87.9, compared to forecasts of 86.2, while the expectations component recorded 97.5, lower than estimates of 98.0.

After being hardly hit by the coronavirus in the second quarter, the Ifo now predicts the economy to growth by 7 percent quarter-on-quarter GDP growth in the July-September period.

Ifo economists, Klaus Wohlrabe, predicts that the Germany economy would recover, but warned that economic upswings are still fragile.

A revised GDP data showed that the drop was lower than forecast in the second quarter, as the final reading signaled a contraction of 9.7 percent, compared to both preliminary and expectations of 10.1 percent contraction.

As of 08:53 GMT, the euro traded higher for the first time in three sessions at 1.1820 versus the green currency, ahead of important U.S. data due later in the day.

Share Article