German Business Climate Brightens On Less Pessimistic Expectations

Germany's business confidence improved as expected at the start of the year to the strongest level in seven months, as companies were considerably less pessimistic about expectations, survey results from the ifo Institute showed on Wednesday.

The business confidence index rose to 90.2 in January from 88.6 in December. That wasin line with economists' forecasts.

Further, this was the highest reading since June last year, when it was 92.3.

Thus, the German economy started the new year with more confidence amid a less pessimistic production outlook, though companies were somewhat less satisfied with their current situation, ifo said.