According to the report issued by the Ifo institute for economic research, the business climate index for economic activity in Germany climbed to 108 in July, while economists had expected it to decline to 107.2.
Last month, the measure was revised from 107.4 to 107.5.
Analysts say that the main factors for confidence increase were the easing of fears for a Greek euro exit and stronger sentiment in the German economy.
According to the report issued by the country’s central bank, the substantial increase in business orders in April and May, especially foreign ones, points to a rebound in Germany’s economic growth rates within the coming months. The regulator revised its economic forecasts in July and said that the German economy was expected to grow by 1.7 percent in 2015 followed by 1.8 percent in 2016.
The Ifo business expectations index increased from 102.2 in the previous month to 102.4 in July. Economists had expected a decline to 101.8. The current conditions index also rose to 113.9 from the previous reading of 113.1 even though it was expected to fall to 112.9.
Germany’s Ifo business confidence index is based on a monthly survey of around 7,000 company executives.
