German business sentiment defies expectations and gains sharply
BUSINESS sentiment in Germany gained sharply this month in a move that defied expectations against the backdrop of the sovereign debt crisis.
According to the Munich-based Ifo think-tank, an index covering 7,000 companies rose to 107.2 in December compared with 106.6 in November posting its biggest monthly gain since February.
The figures came in tandem with information from the GfK institute which showed consumer sentiment remaining steady bucking expectations for a drop.
"The German economy seems to be successfully countering the downturn in Western Europe. This bodes well for Christmas," said Ifo president Hans-Werner Sinn in a statement.
Following the data, the euro gained slightly from an 11-week low last week.
Last night EU finance ministers including Michael Noonan said they would boost the International Monetary Fund kitty by €170bn but the promise fell short of the original €200m pledge after Britain refused to contribute an anticipated €30bn