Business Optimistic About Future

The Ifo Institute’s index of western German business sentiment experienced a strong rise in October from 92 in the previous month to 94.2, the sixth consecutive rise in as many months. The 7,000 businesses surveyed by the Munich-based economic institute seemed to reflect analysts' forecasts that Germany's sluggish economy will be reinvigorated at the end of the year. "It looks like we are seeing an improvement on a broad front," Ifo analyst Gernot Nerb said. The atmosphere within the industrial sector in particular has improved. But the mood had fallen slightly in retail and construction. "When it's entirely certain that the tax reform will be pushed forward will it have an effect on the retail sector," Nerb said. The Ifo hasn't registered a similar rise in economic optimism since the beginning of the 1999-2000 economic boom. The Ifo's monthly index is considered an important indicator of German economic trends.