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German Ifo Business Climate Higher than Expectations

by on November 22, 2013 9:38 am GMT
 

The German Ifo business climate print came out higher than estimates at 109.3 versus estimates of 107.9. Business sentiment remains stronger in Europe’s largest economy. The Ifo institute surveyed 7K businesses to determine a sense of sentiment across the nation.

“Germany is fundamentally strong, not just thanks to its exports but in particular because domestic demand is on the rise,” said Ulrike Rondorf, an economist at Bankhaus Lampe KG. Rondorf sees Germany expanding growth 1.5 percent. YoY, Germany grew 1.1 percent and .3 percent in the third quarter.

The Bundesbank reported that the German economy still remains strong and on path for solid growth. Unemployment still remains at lows and nearly a third of the eurozone as a whole.

Hiroki Shimazu, senior market economist at SMBC Nikko Securities, believes Germany will face risks if France begins to slowdown, which is what recent data suggests. “Europe’s economy is still fragile,” Shimazu said.

 

Germany has been the force being the eurozone’s growth, but it is unclear how long this trend will continue as many of the eurozone’s problems have yet to be solved.

The eurodollar traded upward on the news, currently 1.3516. The US dollar is down .30 percent early in the trading day.