German Business Sentiment Rises Unexpectedly in April

By Nina Adam Features Dow Jones Newswires

German business sentiment picked up further in April, beating forecasts in a sign that Europe's largest economy "is growing strongly," the Ifo institute said Monday.

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Its business climate index rose to 112.9 points from 112.4 points in March. This marks the highest level since July 2011, when the widely-watched index stood at 113.0 points. Economists polled by The Wall Street Journal had forecast a stable result.

The monthly survey of around 7,000 companies showed that they were more upbeat about their current business situation but slightly trimmed their six-month outlook. The mood among German construction companies, meanwhile, hit a record?-?high in April.

Europe's largest economy is forecast to expand around 1.5% this year and 1.8% in 2018, according to Germany's leading economic think tanks. A solid economic performance and record-low unemployment could also bolster Chancellor Angela Merkel's conservative parties as Germany heads to the ballots in September.

Write to Nina Adam at nina.adam@wsj.com

(END) Dow Jones Newswires

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April 24, 2017 04:42 ET (08:42 GMT)