German Ifo business morale hits new record high, firms ‘euphoric’

Adam Berry | Bloomberg | Getty Images

A cyclist passes graffiti of the euro sign shaped into the Superman logo near the Brandenburg Gate in Berlin, Germany.

German business confidence unexpectedly rose in July, a survey showed on Tuesday, hitting the third record high in as many months as Europe’s largest economy powered ahead and morale lifted across industry.

The Munich-based Ifo economic institute said its business climate index, based on a monthly survey of some 7,000 firms, rose to 116.0 from 115.2 in June.

The reading compared with a Reuters consensus forecast for a value of 114.9.

“Sentiment among German businesses is euphoric,” Ifo chief Clemens Fuest said in a statement.

“Companies’ satisfaction with their current business situation reached its highest level since Germany’s reunification. Their short-term business outlook also improved. Germany’s economy is powering ahead,” he added.

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