GERMANY-ECONOMY/IFO German business morale brightens as Greece situation eases

Record ID: 146165

  • Title: GERMANY-ECONOMY/IFO German business morale brightens as Greece situation eases
  • Date: 27th July 2015
  • Summary: MUNICH, GERMANY (JULY 27, 2015) (REUTERS) VARIOUS EXTERIORS OF "IFO" ECONOMIC RESEARCH INSTITUTE'S MUNICH HEADQUARTERS VARIOUS OF IFO ECONOMIST KLAUS WOHLRABE SEATED AT DESK (SOUNDBITE) (German) IFO ECONOMIST, KLAUS WOHLRABE, SAYING: "The Ifo's business climate index rose in July, surprisingly. One of the main reasons we see in our data is the temporary easing in the Greec
  • Embargoed: 11th August 2015 13:00
  • Keywords:
  • Location: Germany
  • Country: Germany
  • Topics: General
  • Reuters ID: LVA3K0T2OHEXQE66EE469O82NBK8
  • Aspect Ratio: 16:9
  • Story Text: Business confidence in Germany improved in July after two monthly drops, a survey showed on Monday (July 27), as an agreement between Greece and its creditors for talks on a third bailout lifted the mood at firms in Europe's largest economy.
    Ifo's business climate index, based on a monthly survey of some 7,000 firms, rose to 108.0 from a revised 107.5 in June, beating the Reuters consensus for a reading of 107.2.
    "The Ifo's business climate index rose in July, surprisingly," said Ifo economist Klaus Wohlrabe.
    "One of the main reasons we see in our data is the temporary easing in the Greece crisis. It was visible that companies which replied before the deal were not as optimistic as the ones which replied afterwards. This means that this effect contributed to the improved German business morale," Wohlrabe said.
    Wohlrabe said the stable domestic economy duly helped the mood, as well as external factors affecting this market, such as the Iran agreement which affects local oil and chemicals industries.
    "Currently things are looking very good for the German economy. We have a stable domestic economy, the consumer goods producers continue to be happy and things are going very well for them. There is also a small kind of Iran effect. The agreement in the Iran conflict shows that the mineral oil producing industry and the chemicals industry are in a much better mood. An indirect impact is also the oil price, which dropped slightly, which has an overall positive effect on the entire economy. Overall we can say that the German economy continues to be on the upswing."
  • Copyright Holder: REUTERS
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