BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific
BBCi NEWS   SPORT   WEATHER   WORLD SERVICE   A-Z INDEX     

BBC News World Edition
    You are in: Business  
News Front Page
Africa
Americas
Asia-Pacific
Europe
Middle East
South Asia
UK
Business
E-Commerce
Economy
Market Data
Entertainment
Science/Nature
Technology
Health
-------------
Talking Point
-------------
Country Profiles
In Depth
-------------
Programmes
-------------
BBC Sport
BBC Weather
SERVICES
-------------
EDITIONS
 Tuesday, 28 January, 2003, 10:06 GMT
Germany's business mood lightens
Nivea factory
A 'glimmer' of hope, but will there really be an upswing?
Germany's business confidence has risen for the first time in eight months, but the reading was lower than expected by analysts.

The Ifo index edged up to 87.4 in January from a revised 87.3 in December, ending seven months of decline.

The head of the Ifo economic think-tank warned the rise was not large enough to indicate a long-term improvement in Europe's largest economy.

"All in all, it is still too early to say there is an upturn on the basis of these data," Ifo President Hans-Werner Sinn said in a statement.

Strong industrial production in November and other economic surveys had indicated an improvement but the euro's rise - hitting the country's export industry - and the talk of a war on Iraq has clouded the outlook.

A Reuters poll of analysts had predicted a rise to 87.5.

'Glimmer of hope'

Last week, another German institute, ZEW, also reported a rise in confidence.

Economy Minister Wolfgang Clement described the figure as a "glimmer of hope" for an economic upturn later in the year.

On Wednesday, the German government will present its annual economic report in which it is expected to cut this year's growth forecast to one percent from 1.5%.

"The general sentiment is improving, but set against that is the uncertainty over Iraq and the strength of the euro," said Elisabeth Andreae, an economist at Commerzbank .

The euro has shot up 9% against the dollar in the past two months to near four year highs of $1.08.

The Ifo index is based on a monthly survey of around 7,000 German businesses.

See also:

16 Jan 03 | Business
14 Jan 03 | Business
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


 E-mail this story to a friend

Links to more Business stories

© BBC ^^ Back to top

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East |
South Asia | UK | Business | Entertainment | Science/Nature |
Technology | Health | Talking Point | Country Profiles | In Depth |
Programmes