Reed Cavendish Wealth Management - German Business Sentiment Improves
Reed Cavendish Wealth Management - Truce between the US and European Union on further tariffs has seen German business confidence improve.
TAIPEI CITY, Taiwan, August 30, 2018 (Newswire.com) - German business sentiment improved for the first time in 2018 this month as the European Union struck a trade tariff truce with the United States. Reed Cavendish Wealth Management analysts say business executives are relieved that chances of a full-blown transatlantic trade war have diminished in the wake of the truce.
The Ifo recently reported that its business climate index increased to 103.8, higher than the reading of 101.7 the month before and more than Reed Cavendish Wealth Management analysts had predicted.
Last month, United States President Donald Trump met with European Commission President Jean-Claude Juncker to negotiate the reduction of trade tariffs. At this meeting, Trump agreed to hold off on imposing further tariffs while negotiations are ongoing.
Reed Cavendish Wealth Management analysts say the tariff truce is providing welcome relief for German business owners adding that export expectations for the German economy had improved significantly after cooling last month.
August’s business confidence reading reached its highest point in five months and showed the strongest monthly recovery in almost four years.
Reed Cavendish Wealth Management analysts say Germany’s economic conditions remain very favorable with current data indicating that the economy is on course to expand by 0.5 percent in the period from July to September.
Reed Cavendish Wealth Management analysts stated that German businesses are happier with the current situation and that their outlook for future business prospects has been upwardly revised since the truce.
The primary drivers of German economic growth so far this quarter have come from the construction and services sector, but business sentiment in retail and manufacturing has also lifted.
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Source: Reed Cavendish Wealth Management