Ifo goes up
September 24, 2010
The business climate has shown another month of increased optimism as the Ifo business index has climbed again.
The Munich-based Ifo research institute index bases its score on a survey of 7,000 business executives in manufacturing, construction, wholesale and retail.
September's score rose to 106.8 points, from August's 106.7 points.
Ifo is Germany's leading economic indicator, and September's result is the highest in the country since June 2007.
Better than expected
Analysts had predicted that September's score would drop to 106.5 points, due to a growth slowdown in Europe's biggest economy.
The surprise upturn helped boost the euro on Friday against the dollar and sterling.
"Today's Ifo defies any double dip concerns for the German economy," ING Financial Markets economist Carsten Brzeski told Reuters.
However the shallow rise in the score shows the pace of the economic rebound may be slowing.
The Ifo survey follows a survey of purchasing managers released on Thursday which showed growth in Germany's private sector had slowed sharply in September.
Author: Catherine Bolsover (dpa/Reuters)
Editor: Andreas Illmer