German business confidence rose to a seven-month high in February, helping to reassure that the largest economy in the Eurozone continues to perform well amid a generalized specter of weak activity around the region. The Ifo institute at the University of Munich reported that its business climate index, based on a survey of about 7,000 executives, climbed to 109.6 from 108.3 in January- the fourth straight gain and the highest reading since July.
More companies reported a favourable business situation than in January. They expressed greater optimism about their business expectations for the fourth time in succession. The German economy is currently supported by domestic demand.
The business climate continued to brighten slightly in manufacturing. Manufacturers see their business outlook as more favourable for the third month in succession. However, they view the current business situation as somewhat less favourable than in January. The positive impulses expected from export business remained unchanged. Manufacturers are also still planning to increase their staff numbers.
The business climate brightened clearly in retailing and wholesaling. The business situation improved at both levels of trade. Firms in both segments also expressed slightly more confidence about business expectations than in January.
The business climate indicator rose significantly in construction. Constructors report a more favourable business situation than in the previous month and are more optimistic about their six-month business outlook.
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