German business confidence grows in November
German business confidence grew in November, a widely-followed survey showed on Tuesday.
The IFO institute’s headline business confidence index rose from 108.2 in October to 109 in November, beating analysts’ expectations for an unchanged reading.
The sub-index tracking confidence in the current economic environment rose from an upwardly revised 112.7 to 113.4, above consensus for a 112.4 reading.
Meanwhile the gauge of economic expectations edged from 103.8 to 104.7, also above forecast, indicating that neither previous evidence of a slowdown in China nor the Volkswagen scandal have dented confidence.
“The survey paints an encouraging picture,” said Capital Economics’ senior European economist Jennifer McKeown.
“But we still suspect that German growth will slow next year as recent boosts from rock bottom inflation and a weak euro fade.
“We have pencilled in a 1.2% rise in GDP to follow 1.5% growth this year.”