German business confidence rises

Munich: German business confidence unexpectedly rose to a record in December as stronger domestic demand helped bolster the recovery in Europe’s largest economy.

The Munich-based Ifo institute said its business climate index, based on a survey of 7,000 executives, increased to 109.9 from 109.3 in November.

That’s the highest since records for a reunified Germany began in 1991. Economists predicted a drop to 109, the median of 36 forecasts in a Bloomberg News survey shows.

Germany’s economy is fuelling the euro region’s recovery as declining unemployment encourages consumer demand and companies boost investment, helping counter weaker exports. German investor confidence also improved in December.