Germany sees optimism rise amid recovery hopes

A key German index of business optimism rose in January by more than expected, adding to signs that Europe’s biggest economy could be gathering speed.

The Munich-based Ifo institute’s survey of business executives rose to 110.6 points from 109.5. Market analysts had expected 110.0.

The Ifo institute is one of several surveys which have indicated that the German economy will have a better year this year. In 2013, it grew by only 0.4%.

Economists expect growth will be helped by a recovery in the economies of the United States and several of Germany’s EU trading partners, such as Spain, which is slowly recovering from a debt crisis.