Business and consumer climate in good shape
Nov 25, 2016
Berlin (gtai) - The Ifo Institute’s business climate index reached 110.4 points this month, marking the strongest result in over two years and signaling that Europe’s largest economy remains on track. The report indicates that the German economy has gathered considerable pace in the last few months of the year following a slight slowdown in the third quarter. The positive development is being driven by a combination of strong industrial output, high consumption, and record employment rates.
However, not only the business climate has seen a recent improvement: According to the monthly Consumer Climate Report from GfK, Germany’s largest market-research institution, the consumer climate in the country is also developing positively. Stabilizing income expectations, the high employment rate, and saving remaining an unattractive option have led to buoyant consumption. A separate recent GfK survey shows that almost nine out of ten Germans think that this is a good time to treat themselves “to the little pleasures in life” (86 percent). With the Christmas retail period now starting, this is of particular interest.
“The positive development in both the business and consumer climates are a good sign for foreign companies wanting to invest in Germany,” says Dr. Benno Bunse, CEO of Germany Trade & Invest, the country’s federal economic development agency. “Despite the global economic slowdown, Germany is maintaining its position as the most attractive market in Europe and continues to provide an excellent location for investment.”