Business confidence in Germany rose again in April, having topped a 15-year high the previous month, a new survey showed this morning.
The unexpected rise increased speculation that the European Central Bank would raise interest rates again, which in turn sent the euro to a seven-month high.
The widely watched business climate index, calculated each month by the Munich-based economic research institute Ifo, rose to 105.9 points in April from 105.4 points in March.
In manufacturing, the business climate index increased slightly once again. While the surveyed firms continued to be more satisfied with their current situation, their business expectations for the coming six months were less favorable. Positive expectations regarding future export business were confirmed. Both construction and wholesaling also showed a business climate improvement.