Europe Rebounds

A Goldilocks Economy Boosts German Profits

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A trader watches the DAX 30 Index on the Frankfurt exchange. Picture source: Reuters

Despite the concern emanating from a diesel emissions scandal, Germany’s carmakers led the country’s 30 largest companies to record profits in the second quarter thanks to a rebound in Europe’s sluggish demand and a booming domestic economy.

According to audit firm EY Deutschland, the 30 companies in the DAX stock market index saw their profits rise by a third in the second quarter to €39 billion ($46 billion), compared with the second quarter of 2016. Sales increased by 6 percent to €344 billion.

“The corporations in the DAX were able to bring the momentum from the first quarter into the second quarter and even managed a boost in profit growth,” said Mathieu Meyer, a member of the management board at EY.

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