The monthly ifo business confidence index reached a new record in November, reflecting growing optimism among German businesses, however, the positive figures come with a caveat of having largely been collected prior to the collapse of German coalition talks.
The index, which is based on 7000 monthly reports of businesses in Germany, rose from 116.8 to 117.5 basis points. However, 90% of the responses were submitted prior to the announcement that coalition talks between Conservatives, Liberals and the Green Party had collapsed.
Growth forecasts were particularly buoyant for the manufacturing and wholesale industry, where it rose from 31.1bsp to 33.1 bsp and 18 to 25bsp month on month respectively. Respondents for the construction and retail industry were more cautious, their monthly indices declined from 20.2 to 17.2 and 16.1 to 13.0bsp respectively.
