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Stronger than expected current trading conditions helped a key index of German business confidence reach a new six-year high in April, as the country’s economy continues to power ahead.
The Institute for Economic Research (Ifo’s) overall business climate index rose to 112.9, compared to 112.3 last month. Economists had expected the measure to only inch up to 112.4.
Instead, it beat expectations for the second month in a row, driven by the sub-index of current trading assessments, which jumped from 119.3 to 121.1. Expectations of future growth, in contrast, slipped slightly, from 105.7 to 105.2.
Ifo interviews around 7,000 German businesses across the manufacturing, construction, wholesale and retail industries every to produce the indices each month.
The positive assessment echoes recent PMI surveys, which have also shown business activity in Europe’s largest economy in rude health.