German business confidence rose for the third straight month, providing hope that the recession in Europe’s largest economy may be easing. The IFO Institute in Munich released its business climate survey, which increased from 84.3 in May to 85.9 in June. The index is based on a survey of 7,000 executives, and it had reached a 26 year low in March when it hit 82.2.
Manufacturing orders were steady in April after increasing in March while investor confidence rose to a three year high in June. The German government’s program to combat the recession is in the midst of spending some €85 billion. The German Bundesbank is predicting that the economy will contract by 6.2 percent for 2009 and basically be stagnant in 2010.
In good news that certainly helped the IFO Institute survey, the manufacturing and service sectors contracted more slowly in May and unemployment rose less than economists forecasted.
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