According to a survey of about 7,000 companies, many businesses in Germany remain positive that this year will be a strong year. The IFO institute’s business confidence index this month revealed that companies are optimistic, in spite of the lower expectations in business developments.
The confidence index reached its highest level since July 2011 with 111.3 from an unrevised 110.6 in January. The IFO subindex of future business expectations, however, fell to 108.3 this month from 108.9 in January
According to Annalisa Piazza, an economist with Newedge, the survey confirms that “Germany remains the main engine of the euro zone,” but “uncertainties on the recovery path outside Germany remain elevated.”
The increase follows a sharp dip in the ZEW economics expectations index. This measures sentiment among analysts and investors on the back of employment figures in the US and the current market’s volatility.
This sentiment in Germany helped allay issues regarding the slowdown in economic growth seen in the third quarter of last year.