Germany’s business climate continues to worsen, but labor market keeps its strength


Less stimulus is expected from export business, with less growth from emerging countries (especially China) and the impact of Ukrainian conflict and the European sanctions against Russia.

However, in construction the business climate index rose slightly, so the construction companies were slightly more satisfied with their current situation than in July. In addition, they are slightly more optimistic regarding the business outlook. In addition, in the 2Q of 2014, the number of persons in employment whose place of employment was in Germany amounted to roughly 42.5 million, the highest figure in its history according to provisional calculations of the Federal Statistical Office (Destatis). The number of persons in employment increased by 340,000, or 0.8%, from the second quarter of 2013. Thus, these figures show that the German labor market keep sound and domestic demand could still come to boost German economic growth.

Meanwhile, European stock markets are rising, euro zone bond yields fall and the euro has fallen to a near one-year low against the dollar. It seems that Draghi’s words have hit the nail on the head, again.


About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

Be the first to comment on "Germany’s business climate continues to worsen, but labor market keeps its strength"

Leave a comment