German firms point to an improving economy

A MAJOR index of business optimism in Germany revealed confidence among firms again in September, for the fifth month.

The Ifo business climate index, announced yesterday, came in at 107.7, marginally above August’s recording. A score over 100 indicates firms are seeing growth.

Expectations from the future also rose, up to 104.2. Companies’ forecasts for their future are now at their strongest since February.

Capital Economics’ Ben May commented: “Coupled with chancellor Merkel’s resounding election victory on Sunday, this suggests that Germany’s stance towards the provision of support for the peripheral economies will not change much.”