German business morale rose in February to its highest level since July 2011, suggesting Europe’s largest economy will grow faster in the first quarter after expanding only modestly last year.
The Munich-based Ifo think tank’s business climate index, based on a monthly survey of some 7,000 companies, increased to 111.3, beating the consensus forecast in a Reuters poll that it would hold steady at 110.6. Economists said the survey pointed to an economic upturn.
“February’s German Ifo survey suggests that the economic recovery has continued to pick up some momentum in the early months of 2014,” said Jonathan Loynes, the chief European economist at Capital Economics.
The upbeat reading sent the euro to a day’s high and pushed German Bund futures down to a session low.
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