23
Jun
German firms' confidence rises
Firms in Germany, Europe's largest economy, are more confident
now than they have been for seven months, according to a key
index.
The Ifo index climbed for the third month in a row to 85.9 in
June from 84.2 in May - better than many analysts had been
expecting.
This confirmed that the German economy was "gradually
stabilising", Ifo said.
However, Ifo economist Klaus Abberger said that Germany had not
yet reached the turning point towards recovery.
Eurozone's interest rates being at 1% was appropriate for the
economic conditions, he added.
Germany's economy shrank by 3.8% in the first quarter of 2009 on
the back of slumping demand for exports.
And the economy ministry has warned that a further contraction
is likely in the second quarter.
source: www.bbc.co.uk/news Monday
22nd June 2009