German November business sentiment rises above forecasts
FRANKFURT—German business sentiment unexpectedly increased in November, a closely watched survey showed, suggesting Europe’s largest economy is slowly finding its footing after struggling to expand in recent months.
The Ifo Institute said Monday that its monthly business confidence survey rose to 104.7 from 103.2 in October, breaking a string of six-straight monthly declines. Economists surveyed by The Wall Street Journal had expected a reading of 103.
The survey’s assessment of both current conditions and expectations for the months ahead improved.
The report raised hopes that an easing of geopolitical tensions in Ukraine and other parts of the world, which weighed on sentiment in the summer and early autumn, would help to boost German exports and investment. Germany accounts for about 30% of the eurozone’s gross domestic product, making its performance key to the rest of the region, particularly with other large members of the bloc, such as France and Italy, struggling with stagnation or recession.
