German business confidence surges to highest since May 2014

Friday, September 23, 2016, Vol. 40, No. 39

BERLIN (AP) — A closely watched survey shows that business confidence in Germany, Europe's biggest economy, has increased sharply to its highest reading since May 2014 amid signs that concerns related to Britain's vote to leave the European Union have dissipated.

The Ifo institute said Monday that its main confidence index rose to 109.5 points for September from 106.3 points in August. The consensus in markets was for a far more modest increase.

The institute said the German economy is set for "a golden autumn."

Over recent months, there have been a number of indicators pointing to an economic slowdown in Germany, partly because of uncertainty generated by Britain's Brexit vote in June.

ING economist Carsten Brzeski said Ifo survey suggests that "Brexit fears have disappeared as quickly as they had emerged."