German business sentiment continues to rise in November

Sentiment in German businesses continues to be the same, according to Ifo economic institute. This shows that the businesses in German are optimistic despite the rising political uncertainties.

As expected, the Ifo Business Climate Index remained the same at 110.4 points, seasonally adjusted, in November. The companies were once again quite satisfied with their current business situation; however, with regard to the coming months, they seem to be slightly less positive, noted Ifo. The upturn in German economy continues to be intact. The German economy appears to be unfazed by Donald Trump winning the U.S. Presidential elections.

Looking at sector wise, the business climate index in the manufacturing sector dropped in November. The companies gave slightly less favorable assessments of the current situation. They are not so positive about the coming six months. This is predominantly because of less dynamic export prospects. A higher number of German firms intend to increase prices in the foreseeable future.

Meanwhile, the business climate index in the wholesale sector rose noticeably, mainly due to the considerably stronger expectations. Moreover, the wholesalers are quite satisfied with their current situation. Retail sector also recorded an improvement in the business climate. But the current situation here is much more favorable. However, retailers have a slightly less optimistic view regarding the outlook.

On the other hand, construction sector’s business climate index continues to rise and it reached a new record high. The index for business expectations and current business situation also increased.