- Title: German business morale hits record-high, lifted by Macron
- Date: 23rd May 2017
- Summary: MUNICH, GERMANY (MAY 23, 2017) (REUTERS) ENTRANCE TO IFO ECONOMIC INSTITUTE ENTRANCE SIGN IFO ECONOMIST KLAUS WOHLRABE WALKING OUT OF BUILDING (SOUNDBITE) (German) IFO ECONOMIST, KLAUS WOHLRABE, SAYING: "The ifo business morale index hit a new record-high in May. The companies have never been doing better since the reunification of Germany." MEDIA HANDOUT READING: 'IFO BUSINESS MORALE HITS RECORD-HIGH' VARIOUS OF CHARTS ILLUSTRATING MONTHLY SURVEY (SOUNDBITE) (German) IFO ECONOMIST, KLAUS WOHLRABE, SAYING: "Actually the stimuli for the German economy come from almost all sectors. The most important driver is still industry; they report to us a very good volume of orders. The books keep filling up, including with orders from abroad. They want to export and to produce more. The construction sector hits one record after another. Furthermore, the low interest rates are still driving construction growth in Germany and the German consumer feels confident to keep on buying, because companies are employing more and more people." MEDIA HANDOUT GRAPHIC (SOUNDBITE) (German) IFO ECONOMIST, KLAUS WOHLRABE, SAYING: "We had a very good growth rate of 0.6 percent for the GDP [gross domestic product] in the first quarter, which is very high. The current results indicate that this tempo can be maintained in the business cycle, which is very rare in the German economy. Here too we expect 0.6 percent and we assume that this still can be kept at this level." WOHLRABE'S HANDS GRAPHIC (SOUNDBITE) (German) IFO ECONOMIST, KLAUS WOHLRABE, SAYING: "I think that the election in France has caused a tailwind, the general feeling that problems in Europe can be tackled and Europe is not going to be under pressure. This has certainly been helpful for German sentiment. The German economy has so far been quite unfazed by Brexit as well. Businesses are waiting to see how the concrete negotiation results will turn out and then it can be assessed. It remains to be seen how the events of today [Manchester attack] will influence the climate, if this causes insecurity for the German economy. At the moments, we don't have any indications of this." WOHLRABE TALKING TO REPORTER
- Embargoed: 6th June 2017 15:18
- Keywords: Ifo institute German business moral
- Location: MUNICH, GERMMANY
- City: MUNICH, GERMMANY
- Country: Germany
- Topics: Economic Events
- Reuters ID: LVA0016I297KD
- Aspect Ratio: 16:9
- Story Text: German business morale brightened more than expected in May, hitting its highest level on record since 1991, a survey showed on Tuesday (May 23), in a further sign that company executives are more upbeat about the growth outlook of Europe's largest economy.
The Munich-based Ifo economic institute said its business climate index, based on a monthly survey of some 7,000 firms, rose to 114.6 from an upwardly revised 113.0 in April. The reading came in stronger than a Reuters consensus forecast for a value of 113.1.
Managers' assessments of the current business situation and their outlook for the coming six months both improved markedly, the survey showed. The brightening of an already rosy outlook tapped into hopes that Berlin will ally with Paris in spearheading a broad-based economic revival in Europe.
France is Germany's second biggest trading partner and europhile Emmanuel Macron's presidential election win over far-right protectionist rival Marine Le Pen in early May has given fresh impetus to neighbouring exporters.
Klaus Wohlrabe, economist for the Munich-based Ifo institute, said the positive news of Macron's victory had provided a tailwind.
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