German business sentiment hit a record high in June, beating expectations once again and flagging strong economic activity in Europe's largest economy, according to the Ifo institute.
The German thinktank said Monday its business climate index rose to 115.1 points from 114.6 points in May. Economists polled by The Wall Street Journal had forecast a slight decline to 114.4 points.
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Businesses were more upbeat about their current business situation and their six-month outlook, the Ifo said in its monthly survey of about 7,000 companies. Manufacturers were planning to raise production in light of "very favorable" demand and solid order books, it said.
The thinktank last week raised its economic growth forecasts for Germany and predicted record-high employment. It sees 1.8% growth this year, compared with 1.5% predicted before, and expects 2.0% growth for 2018.
"The German economy is strong and stable. We are currently experiencing such a strong first half-year that the momentum will carry us into the coming year," said Timo Wollmershaeuser, an economist at the Ifo.
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(END) Dow Jones Newswires
June 26, 2017 04:41 ET (08:41 GMT)