Business confidence index in Germany was at its highest level since 1991. According to a statement made by the IFO institute for Economic Research, the business confidence index in Germany climbed to 114.6 in May which is the highest level since 1991. It is also stated that the current evaluation index rose to 123.2, exceeding the 121.0 expectation while the IFO expectation index rose to 106.5, leaving the forecast at 105.4.
Economists see this positive development as a very bright picture for the German economy. They say growth is healthy because consumer spending is strong and investments are strong. In addition, foreign trade continues to contribute to growth.
It is also announced that the industrial production in Germany rose in January confirming Germany’s positive economic outlook again after Germany’s factory orders made its sharpest decline in eight years. Factory orders in Germany have made the sharpest decline since January 2009 in January. The weakening of the demand for investment goods affected the decline in factory orders.
According to a statement made by the Federal Ministry for Economic Affairs and Energy of Germany, the seasonal effects and inflation-free factory orders in Germany fell by 7.4 percent in January from December which is the toughest decline since 2009. The factory orders showed a 5.2 percent increase in December 2016.
According to a statement made the Federal Ministry for Economic Affairs and Energy of Germany, industrial production rose by 2.8 percent in January compared to the previous month. The industrial production was revised in December and it showed 2.4 percent decrease. Analysts who participated in the Bloomberg survey said that the median forecast for volatile oil would increase 2.7 percent. Industrial production in January did not change compared to the same period of the previous year.