|
 The Munich-based Ifo institute said its business climate index,
based on a monthly survey of some 7,000 firms, rose to 108.0 from a
revised 107.5 in June. That beat the Reuters consensus for a drop to
107.2 and sent the euro up to a two-week high against the dollar.
"Forget about Greece? This is at least how German businesses seem to
look at Greek turbulences of the last weeks, judging from the latest
Ifo numbers," said Carsten Brzeski, an economist at ING.
Ifo president Hans-Werner Sinn said the easing of the crisis had
helped boost sentiment in Germany.
Another supporting factor was the nuclear deal Iran reached with
world powers. Ifo economist Klaus Wohlrabe said the deal had likely
boosted expectations in the industrial sector, particularly in the
chemical and mineral oil processing branches.
Last week Germany and Iran pledged to re-establish economic ties in
anticipation of Western economic sanctions against Tehran being
lifted following the landmark agreement.
The Ifo survey showed companies facing the future with brighter
expectations than last month and they also considered their current
situation to be better.
The morale among companies in the manufacturing and wholesaling
sectors picked up but it took a turn for a worse among retailers and
construction companies.
Some German companies have reported strong results of late, with
Daimler's <DAIGn.DE> second-quarter operating profit hitting a
record high while sportswear company Puma <PUMG.DE> sold more than
expected during that period.
German economic growth weakened to 0.3 percent at the start of this
year and the finance ministry said last week that the economy would
probably expand by around the same amount between April and June,
with domestic demand propelling growth while foreign trade resurged.
[to top of second column] |
But Ifo's Wohlrabe said exports, Germany's traditional growth
engine, would probably not provide strong impetus due to cooling
demand in China, where the economy is on course to grow at its
slowest pace in over two decades this year.
He also said the effect of a weaker euro had expired, adding that
the strong domestic situation was propelling the economy.
Jennifer McKeown, senior economist at Capital Economics, said the
Ifo survey showed the recovery was continuing despite Greece's woes,
albeit without gaining much momentum.
She warned, however, that sentiment in Germany could deteriorate
again as negotiations in Greece could stumble.
On Saturday a Greek finance ministry official said organizational
issues meant that talks between Athens and its international lenders
on the rescue package would be delayed by a couple of days.
(Additional reporting by Joern Poltz; Editing by Jeremy Gaunt and
Hugh Lawson)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
