Breaking News Bar
updated: 1/21/2014 10:55 AM

German economic index suggests upswing continuing

hello
Success - Article sent! close
  • Skyscrapers stand illuminated Monday in the financial district in Frankfurt, Germany. As the euro area struggles out of the worst recession in its history, attention has turned to whether Germany's trade surplus is hampering economic recovery in countries like Greece and France.

      Skyscrapers stand illuminated Monday in the financial district in Frankfurt, Germany. As the euro area struggles out of the worst recession in its history, attention has turned to whether Germany's trade surplus is hampering economic recovery in countries like Greece and France.
    Bloomberg

 
Associated Press

FRANKFURT, Germany -- A widely followed index of German business optimism dipped unexpectedly in January but remained at a high level, suggesting an ongoing upswing in Europe's largest economy.

The index published Tuesday by the ZEW, or Centre for European Economic Research, eased to 61.7 points from 62 in December. Market analysts had expected a rise to 64.

Order Reprint Print Article
 
Interested in reusing this article?
Custom reprints are a powerful and strategic way to share your article with customers, employees and prospects.
The YGS Group provides digital and printed reprint services for Daily Herald. Complete the form to the right and a reprint consultant will contact you to discuss how you can reuse this article.
Need more information about reprints? Visit our Reprints Section for more details.

Contact information ( * required )

Success - request sent close

Index above long-term average

The ZEW said the index, despite its small drop, was "hovering at a high level" well above its long-term average of 24.4 points. ZEW President Clemens Fuest said the figure confirmed expectations for an economic upswing among the financial market experts who were surveyed.

Stronger growth expected

Germany's economy expanded only 0.4 percent in 2013 but stronger growth is expected this year as the country's eurozone trade partners slowly put their financial crises behind them.

Jonathan Loynes, chief European economist at Capital Economics in London, said that "the optimistic tone of the survey supports our expectation that Germany will record relatively solid growth of about 1.5 percent in 2014."

Strong Euro could hurt economy

He cautioned that "even the super-competitive German economy" could suffer from a stronger euro that could hold back exports. Selling cars and industrial machinery abroad is a pillar of Germany's economy, which has low unemployment and a strong trade surplus.

The index is based on a survey made Jan. 6-20 of 254 investment analysts.

Share this page
Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.
    help here