Ifo German business climate index seems to have stabilized in November

The Ifo German business climate index is expected to have stabilized in November. According to a Societe Generale research note, the Ifo business climate index is likely to have risen marginally from 110.5 in October to 110.6 in November. Germany’s business expectations have rebounded strongly from a low point recorded in August. At present, it is indicating towards a very strong GDP growth of well above 0.5 percent quarter-on-quarter in the fourth quarter, said Societe Generale.

There is no reason to anticipate any further surprises on the upside. This suggests that this indicator will stabilize at a high level in the months ahead. The domestic German economy continues to be strong, but another leg up in projections might be require further supportive data out of China and additional clarity regarding the likely fiscal boost in the U.S., added Societe Generale.

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