German business sentiment rises more than expected in September

Key facts

• German business morale rose more than expected in September.
• The Ifo business climate index increased to 89.9 in September.
• The index was up from 88.8 in August.
• The September reading surpassed analyst expectations of 89.0.
• German companies reported better business conditions and a more optimistic outlook.
• The German economy is continuing its recovery.

German business morale improved more than expected in September, according to a survey by the Ifo institute. The Ifo business climate index rose to 89.9 in September, up from 88.8 in August, marking the fifth consecutive monthly increase. Analysts polled by Reuters had anticipated an increase to 89.0. Companies reported a more positive assessment of their current business situation and brighter future expectations. Ifo chief Clemens Fuest stated that the German economy is continuing its recovery course. Recent surveys from S&P Global indicated the strongest German economic growth in eleven months, and leading economic research institutes forecast 1.3% GDP growth for the year, with Ifo projecting 1.4%.