(MENAFN- AFP) Business confidence in Germany rose surprisingly strongly in November after dipping unexpectedly in October, official data showed on Friday.
The Ifo economic institute's business climate index -- a key measure of the mood in the industry and trade sectors of Europe's biggest economy -- rose to 109.3 points from 107.4 points in October.
Analysts polled by Dow Jones Newswires had forecast a rise to 107.7 points.
Business confidence is considered to be a reliable leading indicator of performance of the economy, and German confidence is particularly closely watched because the German economy is the biggest in the eurozone and in Europe, acting as a motor for the entire region.
Ifo president Hans-Werner Sinn said the German economy was looking ahead to the winter months "with confidence".
He said in a statement: "Firms' expectations regarding business developments rose to their highest level since spring 2011."
Ifo calculates its headline index on the basis of companies' assessments of their current business and the outlook for the next six months.
The sub-index measuring current business rose to 112.2 points in November from 111.3 points a month earlier, while the outlook sub-index jumped from 103.7 points to 106.3 points.
Business confidence in manufacturing improved "considerably".
"Manufacturers' business expectations were clearly more optimistic," Sinn said, adding that they believed exports would lend more momentum.
After seven falls in a row, business confidence in construction saw a strong rise.
"Although assessments of the current business situation are somewhat less positive, contractors are far more optimistic about their future business outlook than last month," he said.
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