Business confidence in Germany in January, as measured by the Munich-based CESifo group, rose for the third time in a row and beat estimates to reach a level not seen since June 2012, data released on Monday showed.
The index reading came in at a 30-month high of 110.6 compared to a reading of 109.5 in December, while consensus estimates for the number to clock in at 110.0 in January. The reading, which is reportedly based on a survey of 7,000 German companies in the manufacturing, construction, wholesale and retail sectors, measures sentiments about business prospects for the next six months.
"Manufacturers assessed their current business situation far more favourably," a statement said, adding that "Wholesalers were far more satisfied with their current business situation." The statement also noted that retailers were "somewhat more optimistic about future business developments" while "The business climate index in construction continued to rise."
The Current Assessment Index rose to 112.4 in January, as predicted, and up from 111.6 in December, while the Business Expectations Index, rose to 108.9 from 107.4 in December, beating forecasts of a 108.0 reading. Despite the positive numbers, markets in Europe were weak with the Stoxx Europe 600 index falling 0.85 percent while the FTSE 100 was down 1.15 percent. Germany’s DAX-30 was down 0.48 percent while France's CAC-40 was down 0.4 percent.