Both German and French measures of business confidence rose on a monthly basis. Germany’s Ifo survey of business confidence hit 105.7, topping a long-term average of 100. The French business climate measure rose to 92 from 88.
These data are better than analysts expected. Although the euro zone—and nearly all individual euro zone countries—have long since slipped into recession, German businesses continue to remain optimistic about their prospects. That’s quite different from the situation of the French, however. Despite some marginal increases in confidence sporadically over the last year, French businesses haven’t reported such a poor climate in the last decade at any point except the 2008 financial crisis. The divergence between Germany and the rest of Europe continues.