German business confidence improved more than expected in July, pointing to robust growth in Europe’s largest economy this year.
The Ifo think tank said Monday its business climate index rose to 108.0 in July from a revised 107.5 in June and was higher than a forecast of 107.5 in a Wall Street Journal poll of analysts.
Ifo said that business managers were relieved that the imminent threat of Greece leaving the currency area was averted. The indebted country managed in mid-July to clinch a last-minute agreement with other eurozone members that could pave the way for fresh loans.
German companies were more optimistic about future business in light of a weaker euro exchange rate, particularly in the export-oriented manufacturing sector, the survey showed.
The Ifo indicator measuring business expectations for the next six months rose to 102.4 in July from 102.1 in June.
Firms’ assessment of their current business situation improved too, with the corresponding indicator rising to 113.9 from 113.1.
Other forward-looking indicators published earlier this month had painted a more mixed picture of the country’s economic outlook.