Business outlook in Germany is on the rise
According to the German Ifo Institute, headquartered in Munich, and its published business confidence index German business outlook is on the rise. The index increased for the fourth consecutive month to 107.5 points in August, in July the mark was set at 106.2 points. The actual level is the highest since April 2012
Also German purchasing executives showed a strong business activity in August and at its fastest pace in seven months. German economists are expecting even stronger growth for the last two quarters of 2013. In the second quarter the GDP grew 0.7 % against the first quarter, thus resulting in an annual rate of 2.9 %. However experts warn that the struggle to sustain this growth is not over yet. In addition there are general elections and prospects might change should there be a change from Merkel to Steinbrück who is not well liked among the German business community.
Since Germany is an export champion a lot will also depend on the further development of the world’s economy and the development in southern Europe and China, however the latest figures of the latter tend to stabilise Chinese further economic development, most important for German machinery producers, and especially textile machinery manufacturers.