Germany – Early Bird remains in positive territory

The Early Bird index remained virtually unchanged in September, rising only slightly from 27 to 28 points. However, there was definite movement among the subcomponents. The global economic environment has improved compared to the previous month, and the weaker euro is making German products somewhat more competitive on the world market. At the same time, the tailwind from monetary policy has continued to diminish. While the short-term real interest rate remains comparatively low – which in itself supports the economy – it is now higher than it was a year ago as a result of the ECB’s recent interest rate hikes, a development that in itself clouds the economic outlook.

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