AFP, Frankfurt :
Business and investor confidence in Germany rose in March, survey data showed Tuesday, as scepticism about the outlook for Europe’s biggest economy fades slightly.
But caution is still warranted in view of ongoing uncertainty about the economic fallout from the slowdown in China, weak oil prices and the strength of the euro, analysts said.
And it was also too early to gauge what effect a string of deadly explosions in Brussels Tuesday will have on overall economic sentiment in the long run.
Both business and investor confidence have taken a battering in Germany in recent months amid concerns it cannot remain untouched by global uncertainties.
But in March, sentiment seems to be stabilising again, the survey data showed.
The Ifo institute’s closely-watched business climate index rose by a stronger-than-expected one point to 16.7 points in March, Ifo said in a statement.
At the same time, a separate investor sentiment index compiled by another think tank, ZEW, also edged up slightly, rising by 3.3 points to 4.3 points, but slightly short of analysts’ expectations.
The Ifo index is regarded as providing a more accurate gauge on real economic sentiment because it quizzes around 7,000 companies and businesses in the manufacturing, construction, wholesaling and retailing sectors.
It is calculated each month on the basis of companies’ assessments of the current business environment and the outlook for the next six months.
“German businesses are less sceptical than in February,” said Ifo chief Hans-Werner Sinn.
“Assessments of the current business situation improved, reaching their highest level in six months. After last month’s sharp decline, expectations also recovered somewhat,” Sinn said.
The ZEW barometer, on the other hand, polls around 200 analysts and institutional investors about their current assessment of the economic situation in Germany, as well as their expectations for the coming months.
Business and investor confidence in Germany rose in March, survey data showed Tuesday, as scepticism about the outlook for Europe’s biggest economy fades slightly.
But caution is still warranted in view of ongoing uncertainty about the economic fallout from the slowdown in China, weak oil prices and the strength of the euro, analysts said.
And it was also too early to gauge what effect a string of deadly explosions in Brussels Tuesday will have on overall economic sentiment in the long run.
Both business and investor confidence have taken a battering in Germany in recent months amid concerns it cannot remain untouched by global uncertainties.
But in March, sentiment seems to be stabilising again, the survey data showed.
The Ifo institute’s closely-watched business climate index rose by a stronger-than-expected one point to 16.7 points in March, Ifo said in a statement.
At the same time, a separate investor sentiment index compiled by another think tank, ZEW, also edged up slightly, rising by 3.3 points to 4.3 points, but slightly short of analysts’ expectations.
The Ifo index is regarded as providing a more accurate gauge on real economic sentiment because it quizzes around 7,000 companies and businesses in the manufacturing, construction, wholesaling and retailing sectors.
It is calculated each month on the basis of companies’ assessments of the current business environment and the outlook for the next six months.
“German businesses are less sceptical than in February,” said Ifo chief Hans-Werner Sinn.
“Assessments of the current business situation improved, reaching their highest level in six months. After last month’s sharp decline, expectations also recovered somewhat,” Sinn said.
The ZEW barometer, on the other hand, polls around 200 analysts and institutional investors about their current assessment of the economic situation in Germany, as well as their expectations for the coming months.
