German business confidence at 18-month high

German business confidence is at its highest point for 18-months, according to the Munich-based thinktank, Ifo. The business climate index climbed from 107.4 in October to 109.3 in November - better than had been expected, according to a poll conducted by Reuters.

(Capital Economics)

The "expectations" part of the survey reached 106.3, beating expectations and rising from the previous month. The boost of confidence in the German economy comes in the wake of increasing investment and the declining prospect of major tax rises. The crisis in the Eurozone has also been tempered for a time, with a number of countries such as Ireland making significant progress in repairing their public finances.
Berenberg senior economist Christian Schulz commented:
Germany’s economic expansion is broad-based, with expectations rising across all sectors of the economy. The export prospects for manufacturers are brightening with resilient growth in important export markets like the US and China. And at home, retailers in particular could be heading for a much stronger Christmas shopping season. German households generally should be in a fairly comfortable financial situation with high savings, low debt, rising wages and low inflation.