German business morale surges

German business morale surged to its strongest in a year-and-a-half in November, suggesting Europe’s largest economy is gaining steam into the end of the year after growing by a modest 0.3% in the third quarter.

The Munich-based Ifo think-tank said yesterday its business climate index, based on a monthly survey of 7,000 firms, rose to 109.3 points, beating the consensus forecast in a Reuters poll for a rise to 107.7 and surpassing the highest estimate for 108.5.

The increase in the index, which had fallen in October, sent the euro higher and pushed German Bund futures lower.