Germany
Results of Germany’s IFO business climate survey for April sent a positive message on Tuesday. The overall Business Climate Index increased from 87.9 to 89.4, beating expectations of 88.9. Assessments of both the current business situation (increased from…
Optimism about the future continues to boost investor confidence in the Euro Area. The ZEW Expectations series for the Eurozone (+10.4 to 43.9) and Germany (+11.2 to 42.9) surged and are now both at their highest in 26 months. Although investors’…
Italy and Spain have a poor reputation when it comes to their economies. The European debt crisis affected them more than other Euro Area countries. Their housing markets collapsed and debt cost soared. France and Germany, while also affected, were the bright…
German industrial production growth accelerated from an upwardly revised 1.3% m/m to 2.1% m/m in February, registering the fastest pace in 13 months and largely beating expectations of a slowdown. A 7.9% m/m increase in the construction sector was the top…
The 2.1-point increase in Germany’s Ifo Business Climate index in March brought it to a 9-month high of 87.8 and beat expectations of a more muted rise to 86.0. Both current economic conditions (+1.2 to 88.1) as well as expectations for the next six months…
BCA’s European Investment Strategy team continues to expect the German economy to trail that of the rest of Europe. Since 2020, Germany has fallen behind, with its real GDP lagging that of the broader Eurozone by 5%. The contribution of consumption to GDP…
The stock market of the Eurozone’s largest economy keeps grinding higher with the DAX 40 closing at new highs last week. Since its October low, the index of German blue-chip companies advanced by 20%. Does this rally have legs? On a relative basis,…
According to BCA Research’s European Investment Strategy service, Germany will likely drag the overall Euro Area into contraction, even if, individually, other countries manage to avoid a recession. This slightly better economic outcome will nonetheless…
Outside of Germany, European growth fares better than many believe. Will this hidden resilience help the euro and push German yields higher?
Germany’s IFO Business Climate index ticked up 0.3 points to 85.5 in February, in line with consensus estimates. Expectations for the next 6 months explain the improvement in sentiment among German companies (up 0.6 points to 84.1), while their assessment of…