This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

German Business Confidence Rises

By DAVID McHUGH

FRANKFURT, Germany (AP) â¿¿ A closely watched index of German business confidence rose for the fifth month in a row in September, reflecting the improved prospects for Europe's largest economy and the 17-country euro currency union.

The Ifo institute's index, released Tuesday, edged up to 107.7 points from 107.6 in August. Market analysts had expected it to rise slightly more, to 108.0.

The index is based on a survey of 7,000 companies about how they think the situation is now, and how they see things going in the coming months. Economist Carsten Brzeski at ING said the results showed the economy was "stabilizing at a high level."

Germany's economy expanded 0.7 percent in the second quarter, helping the eurozone return to growth after six quarters of shrinking output. But recent figures for German industrial production and retail sales have been disappointing, raising concerns that the third quarter may not be as strong.

Brzeski said the Ifo figures should dispel those doubts.

"Today's Ifo provides further evidence that fears about a sharp slowdown of the German economy in the second half of the year were overdone," he wrote in a note to investors.

Holger Schmieding at Berenberg Bank said that while it was "slightly disappointing" the index fell short of market expectations, it was reassuring that domestic retail demand, along with exports, was supporting growth. He predicted the economy would expand 0.5 percent in both the third and fourth quarters, with some risk that the third quarter could be slightly less and the fourth quarter slightly more.

The eurozone is still struggling with excessive levels of debt in several of its member countries, including Greece, Ireland, Portugal, Spain and Italy. A promise by the European Central Bank to buy the bonds of indebted countries if they promise to fix their finances has calmed bond markets over the past year, removing fears that a government might be unable to pay its debts.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASDAQ 4,382.8470 -36.6310 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs