German business confidence rose to its highest level for more than five years in December, as the recovery in the euro zone's biggest economy continues to gather pace, a key survey shows today.
The widely watched business climate index, calculated each month by the Ifo economic research institute, rose by 1.8 points to 99.6 points in December, Ifo said in a statement. That was the highest reading since August 2000.
The rise was also much sharper than expected - consensus forecasts had predicted a more modest increase to around 98.1 points.
For its monthly survey, Ifo polls around 7,000 companies about their assessment of current business and their expectations for the next six months.
A breakdown of the data showed that the current sentiment sub-index also rose to 99.6 points in December from 97.8 points in November. And the expectations sub-index showed exactly the same increase to 99.6 points from 97.8 points.
