German business confidence surprised analysts by registering a second straight monthly increase despite the financial chaos engulfing the Eurozone region. The Ifo institute’s business climate index, based on a survey of 7,000 executives, climbed to 107.2 from 106.6 in November, the Munich-based institute said today. Economists predicted a drop to 106, the median of 36 forecasts in a Bloomberg News survey shows. The IfW and RWI institutes both released predictions showing economic growth in 2012.
“It just confirms that Germany is weathering the storm,†said Tobias Blattner, an economist at Daiwa Capital Markets Europe in London. “Order books are still full, wage agreements are boosting consumer confidence and any decline in exports to the euro area is being cushioned by the U.S. and China.â€
Source: Bloomberg
