Germany’s Ifo business climate index was released today giving a boost to the euro as the index moved up higher this month than forecast. The gauge beat expectations for a decline to 105.2 and climbed to 106.6 from October’s 106.4.
The Ifo institute’s composite index is based on a survey of manufacturers, builders, wholesalers, and retailers. This is the first time in five months the index rises, as German business confidence improves despite Europe’s debt crisis.
A separate report release earlier in the morning on German final quarterly GDP was also satisfactory, with data showing Germany’s economic growth accelerated in the third quarter by 0.5% compared with the previous quarter, and in line with expectations.
Gross domestic product rose 2.6% on a year-to-year basis, according to price and calendar-adjusted figures, data from Destatis showed.
The data confirm preliminary growth estimates published by Destatis earlier this month, and are line with the expectations of analysts.
Economists pointed to the strong investment and private-consumption data as a sign that Germany’s economy was robust in the third quarter. Private consumption, sometimes a soft spot in Germany’s export-driven economy, was up 0.8% on a quarter-to-quarter basis.
But signs of a slowdown, if not an outright recession, loom for the quarters ahead, economists said.
Euro has risen 0.3 percent against the dollar so far on the day. EURUSD opened European session at 1.3368 and hit a high of 1.3410 by 09:43 GMT.