German economic sentiment is even better than expected, according to the latest key IFO reading - and may get better still amid news that deadlocked coalition talks will move ahead after all. Silvia Antonioli reports.
Despite a week of industrial protests by metalworkers German business has never been more upbeat. The Ifo business climate index climbed to all-time-high of 117-point-5 with business leaders brushing aside worries of political uncertainty at home and abroad. SOUNDBITE (English) CHIEF ECONOMIST, WORLD FIRST, JEREMY COOK, SAYING: "The economic numbers coming out of Germany are very strong at the moment and they're likely to continue to be so that IFO number you know close to expectations close to 7 year highs. The only time it's really been consistently higher was about a six month period back in 2010. There is optimism and there's German optimism and this is very very strong." Ifo economists say the euphoric climate was not impacted by concerns about Brexit, the ECB tapering or U.S. protectionism. Business was unfazed even by what threatened to be one of Germany's biggest political crisis ever. (SOUNDBITE) (GERMAN) DEPUTY DIRECTOR OF THE IFO CENTER FOR MACROECONOMICS AND SURVEYS, KLAUS WOHLRABE, SAYING: "The state of the economy in Germany is extraordinary. The mood did not even change with the ending of the coalition talks. The German economy presents itself in a very robust state and is immune towards insecurity in national politics." Chancellor Angela Merkel's talks with potential coalition partner SPD collapsed on Sunday. but the Ifo said some 10 percent of answers from the 7,000 companies it surveyed came after the talks meltdown. And things on that front have improved since- SPD leaders are now planning a summit with the chancellor next week raising hopes that Merkel's effort to drum up a new government might be paying off.