(MENAFN) Munich-based Ifo think tank stated that in December, its business climate index went up to 102.4, from 101.4 in November, reported Reuters.
The rise, for the second straight month, shows that December's sentiment outlook surged the most in the last 2-1/2 years.
The reading raised hopes that the country's economy will recover quickly following a weak end to 2012; furthermore, the figure enhanced European stocks to their highest levels of the year, and the euro grew against the dollar after the news.
Even though firms were more pessimistic about their current business conditions, with a sub-index declining to 107.1 from 108.1 last month; however, they were more optimistic about future prospects, with a sub-reading on business forecasts rising to 97.9 from 95.2.
Ifo reduced its forecast for Germany's 2013 growth to 0.7 percent from June's 1.3-percent forecast; nevertheless, it noted that domestic demand would help it grow following a brief decline in the current quarter.