Fuzzy indicator
May 25, 2009
The Munich-based Ifo research institute said its closely-watched business-confidence index climbed to 84.2 points from 83.7 points in April.
This was the second increase in a row for the poll of 7,000 business leaders. But a Reuters poll showed respondents had expected the index to increase to 85 points, and so reaction to the news was mixed.
Mixed signal
Economists take the Ifo reading as a serious measure of Germany's economic outlook.
Some read the poll as a sign of a rosy future.
Analyst Joerg Kraemer from Commerzbank told Reuters the measure was a "further clear signal that the plunging German economy is a thing of the past. The recession is losing speed, and could be over by the autumn."
'Anemic' improvement
Still, he warned that the coming improvements shouldn't be overestimated. Any improvements after that will be "anemic."
Other analysts saw the data in a less positive light. Despite the general improvement in sentiment, leading economic forecasters see Germany facing six percent contraction in its economy this year, which is likely to trigger an increase in unemployment.
jen/dpa/Reuters
Editor: Chuck Penfold