- German Business Sentiment Strengthens to 17.6 in October
Business sentiment in the Europe’s largest economy Germany rose less than expected in October, data from Mannheim-based ZEW Institute has shown.
The survey showed Business Sentiment climbed to 17.6 in the month, up from 17 recorded in September. However, this is below the long-term average of 23.8 and the 20 level expected by most economists.
The economy remains strong and expected to expand by more than 2 percent this year.
“Assuming there is no external shock, the current economic cycle still has time to run,” said Thomas Gitzel, chief economist of VP Bank Group.
Strong growth in Europe continued to support shipments in the country, German exports surged in August even with rising inflation in the region.
“Order activity has increased once again from an already high level,” the Economy Ministry said in a statement. Solid business confidence “confirms this positive picture. The solid upswing in manufacturing should thus continue.”
European Central Bank is expected to announce this month whether it will extend stimulus into 2018. However, Reuters claimed a source said it will likely extend the purchases but reduce their size.
Experts believe Euro-area will sustain current economic growth in the final quarter of 2017.
“It is encouraging that a majority of investors still expect conditions to improve despite the stronger likelihood that the ECB will taper its asset purchases next year,” she said.