German Business Sentiment Hits Record High in November
German business sentiment surged to another record high in November, as companies upgraded their outlook for the months ahead, despite Germany's uncertain political situation.
The Ifo think tank said Friday that its business climate index rose to 117.5 points from a previous record of 116.8 points in October.
The latest figure marks the highest level since records began in 1991. Economists polled by The Wall Street Journal had forecast no change in the index.
"Germany is on track for an economic boom," said Ifo president Clemens Fuest.
However, roughly 90% of responses to the Ifo's monthly survey were submitted before political talks to form a governing coalition in Germany collapsed late on Sunday. Europe's largest economy has been run by a caretaker government since the nation's inconclusive ballot in September, and political observers predict weeks of political wrangling.
Mr. Fuest said that buoyant business sentiment points to strong economic growth in the fourth quarter, or a quarterly growth rate of 0.7%. A survey of purchasing managers by IHS Markit signaled on Thursday that Germany's manufacturing sector is firing on all cylinders, as the corresponding PMI hit an 81-month high of 62.5 in November.
Germany's gross domestic product grew at a quarter-to-quarter rate of 0.8% in the three months through September, or 3.3% in annualized terms.
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November 24, 2017 05:02 ET (10:02 GMT)