German Business Confidence Rises

German business sentiment improved markedly in November 2015. The latest results from the ifo Business Climate Index for German industry and trade indicated that despite growing worldwide insecurity, the Germany economy remains robust. The business climate index rose from 108.2 points in October 2015 to 109.0 points in November 2015.

In manufacturing, the business climate index gave a positive turn after declining for three consecutive months. Manufactures were more satisfied in November 2015 than in the previous months, displaying confidence through an increase in production. Wholesalers were very satisfied with their current business situation causing the wholesaling business climate index to rise to its highest level since January 2014. However, the business climate index in retailing fell in November 2015, and retailers showed little optimism that their business situation will improve in the coming months.

In construction, the business climate indicator rose to an all-time high since German reunification. Construction companies asses the current business situation much more positively and expectations about their future business outlook remain unchanged at a very high level.