Germany: Business confidence rises in August
Business confidence in Germany’s private sector jumped to 103.8 points in August from 101.7 points in July, likely due to the ceasefire in the trade conflict between the United States and the European Union and robust domestic dynamics. August’s print marked the highest reading since February and the first monthly increase in the headline figure since November last year. Subsequently, the index moved further north of the 100-point mark that separates optimism from pessimism.
Sectoral data showed an across-the-board improvement in sentiment levels. Confidence among manufacturers increased for the first time in seven months, chiefly due to improved expectations among the automotive industry, with firms preparing to increase output. However, the assessment of the current situation moderated somewhat. A similar trend was observed in the trade sector; businesses were slightly less optimistic regarding the current business situation, but the outlook for the six months ahead improved. Firms in the services and constructions sectors viewed both the current and future situations more favorably, with sentiment in the construction sector continuing to soar.