German Business Sentiment Rises in September

German business sentiment unexpectedly rose in September, the Ifo Institute said on Thursday, suggesting that Europe’s export engine is taking slowing Chinese growth in its stride for now.

The closely-followed Ifo business climate index rose to 108.5 from a revised 108.4 in August and was above analyst forecasts in a Reuters poll for a reading of 108.0.

Business sentiment rose in August following progress in Greek bailout talks and appears to have weathered market volatility in recent weeks. Concerns about weak economic data from China and uncertainty about the timing of U.S. interest rate increases rattled markets in August.

“Companies assessed their current business situation slightly less favorably than in August. However, they expressed greater optimism about future business developments,” the Ifo Institute said in a statement. “The German economy is proving robust.”
Earlier this month, the Ifo Institute forecast Germany’s current account surplus would rise to a record 250 billion euros ($280 billion) in 2015 from 216 billion euros last year, driven by a rise in trade that has been lifted by a weak euro.

The euro has declined about 12 percent against the dollar in the past year, giving euro zone exporters a competitive edge in overseas markets.


Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.