German business morale rose in November to levels not seen since the collapse of US investment bank Lehman Brothers last year, boosting hopes that a recovery in Europe's largest economy can gain momentum.
The Ifo economic think tank's business climate index, based on a monthly poll of some 7,000 firms, rose to 93.9 from 92.0 in October, exceeding a consensus forecast for a 92.5 reading and bringing the survey to its highest level since August 2008.
It was the eighth consecutive rise in the index and pushed the euro higher against the dollar
A slump in German industry accelerated sharply after the downfall of Lehman Brothers in September 2008, plunging Germany into its most severe recession since World War Two.
The economy exited recession in the second quarter, and the pick-up accelerated in the third quarter when the economy grew by 0.7 per cent, official data showed today.
Although the Finance Ministry has forecast growth will slow in the final quarter, resurgent German industry is adding steel to the recovery, with manufacturing orders rising in September for a seventh consecutive month.
"In manufacturing, the business climate has clearly brightened," Ifo said in a statement.
The latest flash estimate for research group Markit's German purchasing managers index (PMI) suggested the industrial pick-up had accelerated in October.