24 March | Euro

German business activity surges at fastest pace in 10 months

German business activity surges at fastest pace in 10 months

Germany's private sector grew at its fastest pace in 10 months in March as the S&P Global Composite Purchasing Managers’ Index rose to 50.9 from 50.4 in February, remaining above the threshold separating growth from contraction. Such optimism is attributed to expectations of large-scale government investment, which could mitigate the damage done by US import duties.

According to Cyrus de la Rubia, an economist at Hamburg Commercial Bank, the German economy has reached rock bottom, and there is a chance of a cyclical upturn. He says that the fiscal package could compensate for the hit from US tariff policy.

Investor confidence, according to the ZEW Institute, reached a three-year high on expectations of increased spending on defense and infrastructure. It’s also hoped that the new government headed by Friedrich Merz may introduce measures to stimulate growth — from cutting bureaucracy to reforming migration policy. 

Nevertheless, according to the Bundesbank, GDP will advance only moderately in the first quarter as the underlying trend remains weak. The main risks are still related to US tariffs and a sluggish services sector, Bloomberg reports.

Elena Dorohina MarketCheese
Brent sell
Period: 31.05.2025 Expectation: 240 pips
Brent crude prices fall amid supply glut and dollar weakness
23 May 2025 48
Elizabeth_Kuzmicheva
Elizabeth_Kuzmicheva

Listed among the best MarketCheese authors
1st in the segments "Metals" and "Oil and gas"
Period: 30.05.2025 Expectation: 1000 pips
GBPUSD will rally towards 1.35500 amid further dollar weakening
23 May 2025 43
Period: 29.05.2025 Expectation: 1000 pips
AUDCAD is completing its correction phase and may soon retest 0.9 level
23 May 2025 23
Period: 28.05.2025 Expectation: 250 pips
Upward momentum in gas prices lasted only one day
22 May 2025 38
Period: 28.05.2025 Expectation: 2733 pips
Selling USDJPY amid concerns over US fiscal situation with target at 140,900
22 May 2025 42
Period: 26.05.2025 Expectation: 62000 pips
Major Ethereum holders drive buying pressure toward 2,700 level
22 May 2025 55
Go to forecasts