German business sentiment optimistic

Berlin, May 31 (IANS) German businesses are expecting a bright future and a stronger growth despite lingering shadows of the eurozone debt crisis, a survey showed.

Based on the latest survey of more than 25,000 companies, the German Chamber of Industry and Trade (DIHK) reported that business leaders' outlook for Germany, Europe's largest economy, remained resilient amid recent economic unrest in Greece and Spain, reported Xinhua.

Some 42 percent of companies viewed the current conditions of their businesses as "good", while 48 percent felt "satisfactory" and 10 percent believed "poor", the DIHK said.

For the next 12 months, expectations of German businesspeople jumped from 5.0 points to 11.0 points, well above the average level of 3.0, as about one quarter of companies forecast businesses to improve, with 61 percent seeing no change, the report said.

"Companies' assessment of current situation is exceptionally good overall," said DIHK chief Martin Wansleben. "Optimism is spreading and firms are expanding their hiring and investments."

The DIHK predicted that the gross capital investment in Germany would expand 2.8 percent this year, with equipment investment up by 3.0 percent and construction investment 2.5 percent.

The number of unemployed people, which has reached historic low in Germany, would continue to decline to 2.83 million this year, compared with 2.98 million last year, the chamber said.

Robust labour market and strong domestic demands would boost both private consumption and government consumption by 1.3 percent this year, it added.

The DIHK expected exports, Germany's main growth motor, to climb 4.0 percent this year and imports 5.0 percent in the same period.

Germany's exports are strongly supported by demands from Asia, as well as the US, while the low foreign exchange rate of the euro also played a role, it noted.