German Business Confidence Rebounds in September

German business confidence has rebounded to a two-year high in September, according to the closely-watched Ifo survey.
The index, which measures the morale of some 7,000 firms, rose to 109.5, from an upwardly-revised 106.3 in August.
“The German economy is expecting a golden autumn,” said Ifo head Clemens Fuest.

In August, confidence plunged sharply in the wake of the UK’s vote to leave the European Union.
Those concerns seem to have dissipated for now.

“Companies are clearly more optimistic about the months ahead. They are also more satisfied with their current business situation,” said Mr Fuest.

Improved confidence was seen in manufacturing, wholesaling and retailing, and the services industry. Morale in the construction industry was particularly strong, with the construction index reaching a new record high, Ifo said.
However, some analysts were sceptical about the report.

“In all, we doubt that growth will be as strong as the Ifo now suggests,” said Capital Economics economist Jennifer McKeown.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza