Hopes Germany’s Recovery is Gaining Traction

A bumper week of economic data for Germany, coupled with a confirmation of its AAA rating, has boosted hopes that its recovery is gaining traction.

Germany’s industrial output grew at its fastest pace in almost two years in June, according to data released on Wednesday. Output rose by 2.4 percent on the month, substantially beating the Reuters consensus forecast of a 0.3 percent gain.

This was followed on Wednesday by an affirmation of Germany’s sovereign AAA rating by Fitch Ratings, who said the country’s outlook remained stable.

Wednesday’s data were welcomed by economists, who said they bade well for the country’s second-quarter gross domestic product (GDP) reading, which will be published on August 14.


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