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Business sentiments in Germany unexpectedly soared to a two-year high during the month of September, as corporate organizations remain optimistic over the business outlook for the economy, despite a Brexit vote that seemed to have initially shattered confidence among investors and business personnel.
Germany’s business climate index rose to 109.5 from a revised 106.3. That’s the highest since May 2014. Economists predicted a figure of 106.3, data released by the Munich-based Ifo institute showed Monday. Also, gauges for current conditions rose to 114.7, and expectations increased to 104.5.
In addition, a composite measure of the Purchasing Managers Index (PMI) published Friday dropped to a 16-month low, with the services sector almost stagnating. However, the recently released figures come post the Bundesbank having portrayed a gloomy outlook for the German economy, saying that the country is expected to show signs of stagnation in the third quarter.
"German confidence indicators are currently sending mixed and sometimes even opposing signals," Bloomberg reported, citing, Carsten Brzeski, Chief Economist, ING-DiBa in a note to certain clients.
