German Business Sentiment Strongest Since 2011

Germany's business confidence improved to a near six-year high in April as companies were more upbeat about their current situation.

The business confidence index rose to 112.9 from a revised 112.4 in March, survey data from the Munich-based Ifo institute revealed Monday.

The reading was the highest since July 2011. The score was forecast to rise marginally to 112.4 from March's initially estimated value of 112.3.

The current conditions index improved unexpectedly to 121.1 from 119.5 a month ago. The reading was forecast to fall to 119.2 in April.

On the other hand, the expectations index dropped to 105.2 from 105.7 in the previous month. The expected reading was 105.9.

The survey suggests that the German economy is growing noticeably in the second quarter, Commerzbank analayst Ralph Solveen said.

But given the high level that has already been attained and the fact that the problems in the Eurozone still persist, sentiment indicators should now be near the end of the road, the analyst added.

In manufacturing, the business climate indicator dropped slightly in April. Manufacturers were satisfied with their current situation, while business expectations were somewhat less optimistic.

In wholesaling, the business climate continued to improve, with assessments of the current business situation hitting their highest level since 1991. However, slightly fewer wholesalers expect further improvements in the months ahead.

In retailing, the business climate index advanced to its highest level since September 2015. Retailers were markedly more satisfied with their current situation and also expect to see considerable business growth over the next six months.

The business climate index in construction rose once again. Assessments of the current business situation climbed to a new record high, while there was almost no change in expectations.