German businesses upbeat

The Ifo's headline business confidence index reached 110.4 points in November, unchanged from the October reading, and the highest level since April 2014, the Munich-based economic think tank reported Thursday.

Business leaders in the construction sector showed the greatest optimism, with a sub index reaching a new record high. Wholesaling was also positive, but the manufacturing sector signaled less optimism about the coming six months, which was mainly due to "less dynamic export prospects," Ifo said.

Ifo's business climate index suggested the German economy would expand by 0.5 percent in the fourth quarter, bringing full-year growth to 1.9 percent.

In a statement, the think tank said that the current economic upturn in Germany "remains intact," with business leaders also appearing "unfazed" by the election of Donald Trump.

"If there is a 'Trump effect', it could show up later though - that's what we saw after the Brexit vote," Ifo economist Klaus Wohlrabe told the news agency Reuters.

A third of responses in the Ifo survey, which was conducted between Nov. 2 and 23, came after the US election.

Trump's taking of the White House has sent shockwaves through the global economy, with export-dependent economies particularly on edge as the President-elect has pledged to reverse free trade treaties.

This week, he promised to drop the Trans-Pacific Partnership (TPP) agreement - a trade pact between 12 countries, including Japan, Australia and Peru.

Although the new US President has not yet spoken specifically about a planned free trade deal between the EU and the US, German Chancellor Angela Merkel admitted last week that the accord would now not be completed.

uhe/jd (Reuters, AFP)