German Business Confidence Rises to Five-Year High :: Namibia Internet Gateway cc ::

Articles: German Business Confidence Rises to Five-Year High

Posted by admin on Thursday, January 26, 2006 - 08:23 AM

Business confidence in Germany rose to the highest level in more than five-and-a-half years in January, a key survey showed Wednesday. The government predicted the economy could grow by as much as two percent this year.

<em class="caption">After years of drought, Germany is beginning to prosper again

The widely watched business climate index, calculated each month by the Ifo economic research institute, rose by 2.3 points to 102 points in January, Ifo said in a statement. It was the fifth monthly rise in a row and took the index to its highest level since May 2000.

The increase took analysts by surprise -- consensus forecasts had the January index remaining stable at around 99.7 points.

"After already improving sharply in recent months, the business climate index rose sharply again in January," said Ifo chief Hans-Werner Sinn. "Any doubts people might have about the strength of the current upturn, underway since last summer, will be further diminished by these numbers. The upward trend is gaining in strength and breadth."

Analysts were pleased by the numbers.

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