German may post steady growth rate next quarter

The IFO business climate indicator for German remained steady in December at 104.7. Market expected the indicator to scale up to 108.7 over the reference period. 

The Business climate in the manufacturing sector increased marginally in December to 12.3 against 12.1 in previous month. This upward trend in manufacturing sector business climate indicates a slight increase in manufacturing PMI. The Business climate in the service sector also followed similar trend to manufacturing sector, the sector increased to 33.7 in December from 33.6 last month. These sectors indicate the GDP growth rate of the economy will improve marginally next quarter.

"We expect real GDP to continue expanding at the same pace as in the previous quarter in support of our overall forecast of 1.5% for 2015", states Barclays.