ZCZC
BCN-26
GERMANY-ECONOMY-INDICATOR-IFO
EU-US trade truce boosts German business confidence
FRANKFURT AM MAIN, Aug 27, 2018 (BSS/AFP) – Confidence among German
business leaders swelled again in August after the European Union and United
States backed off an escalating trade showdown, a regular survey showed
Monday.
The Munich-based Ifo institute’s monthly barometer based on a survey of
9,000 firms rebounded to 103.8 points this month, its highest level since
February.
In July, the Ifo index had stood at 101.7 points.
“Confidence in German firms has improved noticeably… in addition to a
robust domestic economic situation, the truce in the trade conflict with the
US contributed,” Ifo president Clemens Fuest said in a statement.
Furthermore, “the German economy is growing robustly,” he added, with the
latest data suggesting that third-quarter growth in the eurozone’s economic
powerhouse could match the 0.5 percent quarter-on-quarter it booked between
April and June.
Companies’ assessments of both their present economic situation and future
expectations improved, while firms in the manufacturing, services, trade and
construction sectors were all more confident.
A major reason for the sunnier outlook is a deal struck between European
Commission President Jean-Claude Juncker and US President Donald Trump last
month to back down from a mounting trade confrontation, initially sparked by
Trump’s decision to impose levies on steel and aluminium imports.
But while the trade battle appears to on ice for now, tensions could flare
up again in future if the mercurial US leader threatens to impose duties on
vital European products like cars.
BSS/AFP/HR/1440