German businesses are shrugging off the impact of Britain’s vote to leave the European Union and carrying on as usual, according to a major survey released on Monday.
Think-tank Ifo’s monthly assessment of the business climate and expectations for the near future of businesses in the country showed that business people in Europe’s largest economy are largely unfazed by the potential impacts of the Brexit referendum on the German economy.
The Ifo’s confidence index beat analyst expectations in July, registering a reading of 108.3. That was slightly down from the 108.7 clocked in June, but was a substantial beat on the 107.7 predicted.
Businesses’ assessment of current conditions also beat forecasts with a reading of 114.7 against a predicted 114. Future expectations were also better than expected, hitting 102.2, against a reading of 103.1 last month, and a prediction of 101.2 from economists.
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Ifo’s surveys follow on from a string of estimates that the economic and financial impact of Brexit may actually be largely contained to the UK.
On Friday, Markit’s first post-referendum PMI data showed that eurozone economies are showing “surprising resilience” in the face of the Brexit vote, while ECB president Mario Draghi also used the word resilient when talking about post-Brexit Europe in a press conference on Thursday.
Markit’s flash PMIs for July largely beat the forecasts of economists, and fought against the headwinds created by Brexit, but remained subdued in the long term, hitting 18-month lows in both the services and composite readings.