Germany's top business leaders painted an upbeat picture Wednesday as a key sentiment indicator matched the highest level four years amid improving prospects in Europe's biggest economy.
The Ifo Institute's benchmark Business Climate Index was measured at 111.0 in February -- matching a four-year high -- and well ahead of the 109.6 reading forecast by analysts and up from a 109.8 reading in January. The Institute's survey of current conditions for the 7,000 company executives remained steady at 116.9 points against a forecast of 116.7 while the index of expectations for the next six months improved to 104.0 from 103.2 in the previous month.
"Manufacturers were far more satisfied with their current business situation," said Ifo President Clemens Fuest. "After deteriorating in January, the business outlook also brightened slightly. Current demand and the number of incoming orders picked up markedly. This positive development was mainly driven by food producers, as well as mechanical and electrical engineering firms."
The figures follow data released Tuesday that showed European private sector economic activity surged to its fastest pace in nearly six years as factories in Germany fulled job creation and France's service sector boomed.
IHS Markit Economics' composite reading of Eurozone growth rose to 56.0 in February, up from 54.4 in January and the highest reading since April 2011. Readings above 50 generally indicated economic growth. Markit's measure of manufacturing activity rose to 57.2, another 70-month high (up from 56.1 in January) while the pace of activity in the services sector jumped to 55.6 from a previous reading of 53.7.
