German business mood better again
Tuesday, 24 November 2009 10:32A survey has shown that German business confidence surged in November, fuelling hopes that Europe's largest economy can lead the continent out of recession.
The survey, by the Ifo institute, showed that business sentiment rose to 93.9 from 92, the eighth successive rise and the highest level since August 2008. It was also better than the 92.6 expected by economists.
'The German economy continues on the road to recovery,' said the institute's president Hans-Werner Sinn.
The positive news followed data from the national statistics office confirming that German growth was tentatively returning after the country suffered its deepest recession for six decades.
Output increased by 0.7% in the third quarter of the year, driven higher by companies replenishing their stocks. Exports and consumer spending, however, were weak and dragged output down in the third quarter.
Lifted by brighter figures in recent months, the German government has raised its growth outlook for the whole year, but still expects the economy to contract by around 5%, by far its worst post-war performance.
New orders up in euro zone factories
Euro zone factories have reported a rise of new orders in September. Industrial new orders compared with August 2009 rose by 1.5% in the euro area after a 0.6% increase the previous month, according to figures from the EU's statistics agency.
But when the volatile ships, railway and aerospace equipment sectors are stripped out, the increase turned into a decrease of 1.2%.
