Despite the threat of stalled world growth German business morale rose in August. That’s according to a survey carried out by the Leibniz Institute for Economic Research at the University of Munich.
However the report also predicted that expansion this year will falter because of events in China.
“Demand continues to exist for high quality German products and therefore the German export sector continues to hold up pretty well albeit one can’t deny that there are risks associated with Germany’s trade with Asia”, said Jeremy Batstone-Carr, Director of Private Client Research at Charley Stanley.
The strong sentiment reading of 108 found by the survey exceeded a consensus forecast by Reuters and came soon after official figures showed rising exports outstripped gains in imports in the second quarter this year.
Economy Minister Sigmar Gabriel played down the risk to Europe’s largest economy, saying developments in China would not damage the German economic outlook.
Analysts are predicting growth of 1.8 percent for 2015.