German SME business confidence surges to highest level in 2-1/2 years - KfW

KfW-ifo SME barometer for September 2016 showed that German SME business confidence regained a level of confidence unsurpassed in more than two years after the slump in the previous month.

Business climate at German small and medium-sized enterprises improved by 4.2 points to 18.1 balance points in September, the highest level in more than two years. That is the strongest increase in a single month since August 2013.

Assessments of SMEs’ current business situation rose by 4.6 points, double the usual monthly variation, to 26.1 balance points. Business expectations of small and medium-sized companies extended recovery that began in the previous month, improved by a vigorous 3.7 points to 9.9 balance points in September.

"The dark clouds are gone, providing a clear view of the good economic situation. Germany remains on a stable path of economic growth. I expect the economy to grow by 1.8 % in 2016, ”said Dr Jorg Zeuner, Chief Economist of KfW.