- German Business Sentiment Rises in September
Business confidence in German picked up as concerns over Euro fade.
According to the Center for European Economic Research, business confidence rose from 10 in August to 17 in September. This is coming days before Germany, the largest economy in Europe holds election.
The strong growth recorded in the first half of the year has helped Euro gained 14 percent against the US dollar and prompt Mario Draghi the European Central Bank President to warn of the effect of higher exchange rate on exports and economic growth.
Even though the gains have impacted German exports, the Bundesbank sees a growing economy in the second quarter.
“The solid growth figures in the second quarter of 2017 in combination with a steep rise in bank lending and increasing investment activities by both the government and private firms are likely reasons” for the improvement, ZEW President Achim Wambach said in a statement. “The worries about the recent strengthening of the euro have, for now, also faded into the background.”
The Euro single currency gained 0.3 percent on Tuesday to $1.1986 against the US dollar at 12.11 a.m Frankfurt time. The currency has traded around current levels since the beginning of this month, after trading below $1.04 percent in December.
ZEW’s gauge for economic condition in Germany increased to 87.9 in August. While a measure of economic improvement, expectations, in the Euro-area climbed from 29.3 to 31.7.
