German Business Confidence To Drop In August
After the improvement seen in the second quarter by the euro zone, led by Germany, the pace of progress started to ease in the second half of the year with the slowdown in global economies, especially the United States and emergency economies.
Yesterday, GDP final reading for the second quarter in Germany showed that the economy grew 2.2% in the second quarter, the fastest pace in nearly 20-years, boosted by exports that rose 8.2% from 2.6% that got revised to 3.1%, while imports advanced 7.0 percent, compared with the previous revised 6.7%.
However, today's news is referring that German IFO business climate will slide to 105.7 in August from 106.2, expectations to retreat to 104.3 from 105.5, while, on the other hand, current assessment will incline to 107.5 from 106.8.
It seems the slowdown will affect the euro zone, where the latest growth forecasts by the ECB will be released in September with expectations showing that policy makers will lower growth projections for the current year.
Trichet noted last month that conditions in the third quarter of this year will improve but he mentioned that it will not be as strong as the second quarter.
The euro pared its advance recorded in July as it fell to nine-month low against the yen on concerns global recovery is waning.
Last week, the Bundesbank raised its growth forecasts for the current year to 3.0% instead of 1.9% estimated in June after the better-than-expected growth figures recorded in the second quarter.
Nevertheless, the Bundesbank mentioned that the pace of progress is likely to continue in the second six months of this year but with normal rate.
from http://www.actionforex.com/analysis/...0100825120816/
After the improvement seen in the second quarter by the euro zone, led by Germany, the pace of progress started to ease in the second half of the year with the slowdown in global economies, especially the United States and emergency economies.
Yesterday, GDP final reading for the second quarter in Germany showed that the economy grew 2.2% in the second quarter, the fastest pace in nearly 20-years, boosted by exports that rose 8.2% from 2.6% that got revised to 3.1%, while imports advanced 7.0 percent, compared with the previous revised 6.7%.
However, today's news is referring that German IFO business climate will slide to 105.7 in August from 106.2, expectations to retreat to 104.3 from 105.5, while, on the other hand, current assessment will incline to 107.5 from 106.8.
It seems the slowdown will affect the euro zone, where the latest growth forecasts by the ECB will be released in September with expectations showing that policy makers will lower growth projections for the current year.
Trichet noted last month that conditions in the third quarter of this year will improve but he mentioned that it will not be as strong as the second quarter.
The euro pared its advance recorded in July as it fell to nine-month low against the yen on concerns global recovery is waning.
Last week, the Bundesbank raised its growth forecasts for the current year to 3.0% instead of 1.9% estimated in June after the better-than-expected growth figures recorded in the second quarter.
Nevertheless, the Bundesbank mentioned that the pace of progress is likely to continue in the second six months of this year but with normal rate.
from http://www.actionforex.com/analysis/...0100825120816/
