German business morale unfazed by banking turmoil

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German business morale unexpectedly rose in March, adding to signs that Europe's largest economy is stabilizing despite recent turmoil in the banking sector, a survey showed on Monday.

The Ifo institute said its business climate index jumped to 93.3 from a reading of 91.1 in February. A Reuters poll of analysts had pointed to a March reading of 91.0.

The managers at 9,000 companies surveyed by Ifo had not changed their positive sentiment, despite the banking sector turmoil, likely because no German bank has so far been affected, Ifo head of surveys Klaus Wohlrabe told Reuters. "All in all, the business climate is not yet based on anything more than hope," said economist Alexander Krueger at private bank Hauck Aufhaeuser Lampe, adding: "It still doesn't look like a real upswing for 2023."

 

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