German Business Confidence Defies Fears of Slowdown - order books are bursting
German business confidence recorded a surprise increase in January, a key survey showed, amid hopes that Europe's biggest economy will withstand a US slowdown and world share market turbulence. The Munich-based Ifo economic institute said its monthly index of 7,000 German executives edged up from 103 points in December to 103.4 points this month, beating analysts' forecasts. The rise in what is one of Europe's major economic indicators came despite this week's torrid round of trading on global stock markets which fueled fears of a global economic crisis.
"Companies'order books are bursting," Ifo economist Hans Günter Russ told German news agency, dpa. Firms "remain optimistic about their exports," he added. Note EU-Digest: Suggestions for the ECB to follow US rate cuts to help ailing companies who are in trouble because of their own poor judgment would be pure madness and only increase the chance of further increases in European inflation.
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