German Investor Confidence Unexpectedly Jumped in November
(Bloomberg) -- Investor confidence in Germany’s economy unexpectedly improved on expectations the country will benefit from recoveries across the globe once supply bottlenecks dissipate.
The ZEW institute’s gauge of expectations rose to 31.7 in November from 22.3 the previous month -- the first improvement in six months. The outlook for the euro region also improved, while a gauge of current conditions deteriorated.
Germany’s industry-focused economy has faced a squeeze from supply shortages and long delivery times as countries across the world exited lockdowns. The government and major economic think-tanks have already trimmed this year’s growth projections, forecasting that the recovery will be pushed back into 2022.
“Experts assume that the supply bottlenecks for raw materials and intermediate products as well as the high inflation rate will have a negative impact on the economic development in the current quarter,” ZEW President Achim Wambach said Tuesday in a statement. “For the first quarter of 2022, they expect growth to pick up again.”
At the same time, more than 70% of companies surveyed by Germany’s Ifo Institute reported shortages in October, and many expect issues to persist well into next year. The number of industry workers on state wage support rose last month amid supply constraints.
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