Germany’s closely-watched Ifo business sentiment index has increased for the fourth consecutive month in August. The rise is an indication that the recovery in Europe’s biggest economy seems set to continue in 2013.
The German business confidence barometer climbed from 106.2 points in July to 107.5 points in August, according to a monthly index released by Munich-based Ifo research group on Tuesday.
The fourth rise in the Ifo index had sent the closely-watched barometer to its highest recording this year, the institute said.
“The German economy has shifted into a higher gear,” Ifo's chief economist Kai Carstensen said in the survey, which had been sampled from responses of about 7,000 German business leaders.
For the first time this year, both current business as well as future business prospects were viewed as positive. The index gauging current business rose from 110 points to 112 points within the month, while the outlook reading improved from 102.4 to 103.3 points.
Germany's brighter business climate came on the back of stronger-than-expected growth in the second quarter of this year. Gross domestic product (GDP) increased 0.7 percent on the same quarter a year ago as the German economy rebounded strongly from a quarter of stagnation at the beginning of 2013.
uhe/hc (dpa, Reuters, AFP)