German businesses more confident than ever

BERLIN: A closely-watched monthly survey of German business leaders hit its highest-ever level in October, the Ifo economic institute said on Wednesday, pointing to continued strong performance for Europe’s largest economy. Ifo’s business climate index rebounded from a September slump to reach 116.7 points in October, beating analysts’ forecasts of a further fall. “Germany’s economy is powering ahead,” Ifo president Clemens Fuest said in a statement, adding that “companies are very optimistic about the months ahead.” Businesses’ judgements of both the present economic situation and their expectations for the coming months increased compared with the level in September. In different sectors, manufacturing firms, retailers and construction companies were all more optimistic, while wholesalers’ confidence fell slightly. Analysts surveyed by Factset had predicted a fall in the Ifo reading, after a complicated election outcome late last month left Chancellor Angela Merkel with the tricky task of building a four-party governing coalition in Berlin. But other conditions remain favourable for business, with economic growth picking up for Germany’s neighbours and closest trading partners in the 19-nation euro zone and high levels of confidence among consumers at home. — AFP