A survey has shown a surprise increase in German business confidence in January, despite worries that the US economy is heading into a recession.
In the closely watched business climate index, calculated by the Munich-based economic research institute Ifo, the January reading edged up to 103.4 points from 103 in December.
Economists had expected a fall to 102 as the German economy continued to face high oil and food prices, a strong euro and tight credit conditions following the meltdown of the US market for high-risk mortgages.
For its monthly survey, Ifo polls 7,000 companies about their assessment of current business and their expectations for the next six months. The current situation sub-index dipped to 107.9 in January from 108.1 in December, while the expectations index rose to 99 from 98.2.
