German Ifo business climate rises to 30-month high of 110.6 in January

German business confidence improved more-than-expected this month to hit the highest level since July 2011, industry data showed on Monday.

In a report, the German research institute, Ifo said its Business Climate Index rose to a seasonally adjusted 110.6 in January, above forecasts for 110.0 and up from a reading of 109.5 in December. 

The Current Assessment Index rose to 112.4 this month, meeting expectations and up from 111.6 in December.

The Business Expectations Index, which measures attitudes toward business prospects over the next six months, improved to 108.9 this month from 107.4 in December, above forecasts for a reading of 108.0.

The monthly index is based on a survey of around 7,000 German firms in the manufacturing, construction, wholesale and retail sectors.

Following the release of the data, the euro added to gains against the U.S. dollar, with EUR/USD inching up 0.2% to trade at 1.3704, compared to 1.3699 ahead of the data.

Meanwhile, European stock markets remained mixed. The EURO STOXX 50 rose 0.1%, France’s CAC 40 shed 0.1%, London’s FTSE 100 fell 1%, while Germany's DAX dipped 0.2%
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