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German business associations are optimistic about 2014, according to a survey by the Institut der deutschen Wirtschaft Köln (Cologne Institute for Economic Research). 26 of the 48 organisations surveyed expect better business to improve in the forthcoming year while 34 sectors of the economy expected a rise in production and sales in 2014. Business confidence had deteriorated in only 7 sectors.
IW-director Prof. Michael Huether said: "These are encouraging numbers. The German economy has not looked to the future with such confidence for a long time. Without the uncertainties brought about by the coalition agreement, the result would certainly be better."
This increased business confidence is based on the underlying strength of the German economy and the improving outlook in the Eurozone. Not even the weakening demand from Asia and South America for German products could dampen the optimism.
As a result, the survey found that in 16 sectors, companies intended to increase their investment budget. The Engineering sector expected strong growth in the coming year while the construction industry stands to benefit from the ongoing boom in the real estate market.