Germany’s economic comeback has seen investor confidence increased for a 10th successive month — indicating widespread optimism that growth is returning after an extended period of stagnation.
The outlook for Europe’s largest economy has vastly improved in recent months, with surveys and polls pointing to an improving mood especially in the services sector. Consumer spending has been an important driver in this recovery, as average citizens are benefiting from a slower rate of inflation coupled with rising incomes.
However, it isn’t all sunshine and rainbows – Germany’s important manufacturing sector remains dangerously.
In March, overall industrial production decreased for the first time in 12 months, as orders unexpectedly dropped.
The upcoming interest rate cuts by the European Central Bank (ECB) are expected to offer a bit of relief, though it is highly probable that their impact won’t truly be felt until later in the year.