Germany business confidence posts first rise in seven months

  • by Ahmed Mamdouh
  • March 25, 2019, 14:31 AM
  • 182 Views
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Business confidence in Germany showed an unexpected rise in March, providing some hopes after the latest slowdown in Europe’s biggest economy.

The Ifo’s business climate index soared to 99.6 this month from a revised of 98.7 in February, compared to forecasts of 98.7. That’s the first rise in seven months.

“German exporters have suffered from slow growth overseas, but domestic economy is showing resilience,” said Ifo president Clemens Fuest.

The expectations gauge also rose to 95.6 from a previous of 94.0. The current conditions reported an increase to 103.8 from a revised of 103.6.

Despite the rebound, the graph shows that both gauges are still quite low, noting that the Ifo now predicts the German economy to expand only 0.6 percent this year.

The manufacturing confidence slipped, reflecting the lingering concerns of German factory bosses regarding trade war and Brexit.

As of 10:26 GMT, the euro traded higher for the first time in three sessions at $1.1318, ahead of speeches by President Mario Draghi and chief economist Peter Praet this week.

Ahmed Mamdouh

Ahmed Mamdouh is the head of the English Fundamental Analysis at Ofeed.com, with 11 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from the American University in Cairo and a Bachelor Degree in Economics from the Faculty of Economics and Political Science, Cairo University.

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