Germany’s Ifo index of business sentiment rose slightly in June, raising hopes that the eurozone’s largest economy is returning to stronger growth.
The index rose to 105.9, up from 105.7 the month before.
Germany’s economy shrank by 0.7% in the final quarter of 2012, and grew just 0.1% in the first quarter of 2013.
But the Organisation for Economic Co-operation and Development is forecasting 0.4% growth for the year.
Germany’s Ifo think tank calculates its headline index by taking into account companies’ current view of the business climate and their outlook for the next six months.
Signs of increasing confidence reduce fears that the German economy may slip back into negative territory.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.