German ifo falls less than expected

German business confidence fell less than economists forecast in March, suggesting Japan’s earthquake and higher borrowing costs may not damp growth in Europe’s largest economy.

The Munich-based Ifo institute said its business climate index, based on a survey of 7,000 executives, declined to 111.1 from 111.3 in February, which was the highest reading since records for a reunified Germany began in 1991. Economists expected a drop to 110.5, according to the median of 39 forecasts in a Bloomberg News survey.

German investor confidence unexpectedly fell for the first time in five months in March after the European Central Bank said it may raise interest rates to curb inflation and Japan’s biggest earthquake on record caused a slump in global stocks. At the same time, Germany’s economy is booming as executives increase spending and hiring to meet export orders from emerging nations such as China.

Bloomberg

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell