What Borrowing Trends Say About the German Economy
German businesses are relying less on external funding.
This week began with the release of numerous positive monthly statistics for the German economy. The Munich-based Ifo Institute’s latest German business climate index noted that business managers’ optimism has risen, considering that the index value for October is not only higher than last month but at its highest level in more than two years. At the same time, the Purchasing Managers’ Index, compiled by IHS Markit and used by the European Central Bank to assess the health of the region’s economy, indicated an accelerated increase in German business activity in October compared to September.