FOREX TradingCharts.com

Financial News: German Ifo Business Confidence At 2-Year High

German Ifo Business Confidence At 2-Year High

05/25/2021 - 08:09:00 (RTTNews)

(RTTNews) - Germany's business sentiment strengthened to a two-year high in May as the lifting of restrictions related to the Covid-19 boosted expectations among managers, survey data from the ifo Institute revealed on Tuesday.

However, data released earlier in the day showed that the largest euro area economy contracted slightly more than initially estimated in the first quarter.

The business confidence index rose to 99.2 in May from 96.6 in the previous month. This was the highest value since May 2019. The reading was also above economists' forecast of 98.2.

Gross domestic product fell 1.8 percent sequentially in the first quarter, in contrast to the 0.5 percent expansion seen in the fourth quarter, Destatis reported. The sequential decline was revised from -1.7 percent estimated on April 30.

On an unadjusted basis, the annual decline in GDP deepened to 3.4 percent from 2.3 percent in the fourth quarter. The rate was revised from -3.3 percent.

The calendar-adjusted GDP dropped 3.1 percent on year, following a 3.3 percent decline a quarter ago. According to flash estimate, GDP was down 3 percent.

The strong May reading of the Ifo index shows that optimism about a strong economic rebound is spreading, Carsten Brzeski, an ING economist, said. Brzeski expects private consumption and the construction sector to be the main drivers of growth in the second quarter.

In the first quarter, private consumption declined 5.4 percent from the previous quarter. In contrast, government consumer spending rose slightly by 0.2 percent.

In the first quarter of 2021, positive impetus came primarily from construction investments, which rose by 1.1 percent. A little less was invested in equipment - mainly machines, devices and vehicles, down 0.2 percent.

Imports of goods and services rose 3.8 percent in the first quarter but significantly more than exports, which gained only 1.8 percent.

The ifo survey showed that companies were more satisfied with their current business situation in May. They were also more optimistic regarding the coming months.

The current conditions index came in at 95.7 in May versus 94.2 in the previous month and the expected reading of 95.5.

Likewise, the expectations index advanced to 102.9 from 99.2 a month ago. This was also better than the forecast of 101.4.

The German economy is picking up speed, ifo President Clemens Fuest, said.

In manufacturing, business confidence rose only slightly in May as expectations took a major knock, but remained positive. Meanwhile, companies were again markedly more satisfied with their current business.

In the service sector, business sentiment climbed to its highest value since February 2020 as a result of much more optimistic expectations. Assessments of the current situation also improved, with optimism returning to hospitality and tourism in particular.

The business climate index jumped upward in trade. In construction, the business climate brightened in May.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2021 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Greece Current Account Deficit Widens In April (12 hr(s), 10 min(s), 39 sec(s) ago)
(RTTNews) - Greece's current account deficit widened notably in April from the last year due t ...Full Story»

UK Inflation Expectations Slow In May: BoE/Kantar Survey (12 hr(s), 25 min(s), 39 sec(s) ago)
(RTTNews) - Britons' inflation expectations for the coming year slowed in May, the latest Bank ...Full Story»

Portugal Producer Prices Accelerate In May (14 hr(s), 03 min(s), 39 sec(s) ago)
(RTTNews) - Portugal's producer prices accelerated in May, figures from Statistics Portugal sh ...Full Story»

UK Retail Sales Decline In May (14 hr(s), 18 min(s), 39 sec(s) ago)
(RTTNews) - UK retail sales dropped in May as the reopening of all retail sectors and the easing o ...Full Story»

Croatia Jobless Rate Falls In May (15 hr(s), 14 min(s), 39 sec(s) ago)
(RTTNews) - Croatia's jobless rate declined in May, figures from the Croatian Bureau of Statis ...Full Story»

Eurozone Current Account Surplus Rises In April (16 hr(s), 22 min(s), 39 sec(s) ago)
(RTTNews) - The euro area current account surplus increased in April, the European Central Bank re ...Full Story»

Poland Average Gross Wages Rise In May (16 hr(s), 37 min(s), 39 sec(s) ago)
(RTTNews) - Poland's average gross wages rose in May, data from Statistics Poland showed on Fr ...Full Story»

BoJ Keeps Stimulus Unchanged; Mulls Funding Plans To Address Climate Change (17 hr(s), 41 min(s), 39 sec(s) ago)
(RTTNews) - The Bank of Japan maintained its massive monetary stimulus and announced the introduct ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Greece Current Account Deficit Widens In April

06/18/2021 - 09:10 AM (RTTNews)
(RTTNews) - Greece's current account deficit widened notably in April from the last year due t ...Full Story>>

UK Inflation Expectations Slow In May: BoE/Kantar Survey

06/18/2021 - 08:55 AM (RTTNews)
(RTTNews) - Britons' inflation expectations for the coming year slowed in May, the latest Bank ...Full Story>>

Portugal Producer Prices Accelerate In May

06/18/2021 - 07:17 AM (RTTNews)
(RTTNews) - Portugal's producer prices accelerated in May, figures from Statistics Portugal sh ...Full Story>>

UK Retail Sales Decline In May

06/18/2021 - 07:02 AM (RTTNews)
(RTTNews) - UK retail sales dropped in May as the reopening of all retail sectors and the easing o ...Full Story>>

Croatia Jobless Rate Falls In May

06/18/2021 - 06:06 AM (RTTNews)
(RTTNews) - Croatia's jobless rate declined in May, figures from the Croatian Bureau of Statis ...Full Story>>

Do not sell my personal information

Copyright © 2021. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.