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German business confidence up sharply in January

German business confidence rose sharply in January, data showed on Monday, with a surprisingly strong boost suggesting a sunny outlook for Europe's biggest economy.

BERLIN: German business confidence rose sharply in January, data showed on Monday, with a surprisingly strong boost suggesting a sunny outlook for Europe's biggest economy.

The Ifo economic institute's closely watched business climate index climbed to 110.6 points this month, higher than the 110 points pencilled in by analysts polled by Dow Jones Newswires.

In December, it had stood at 109.5 points.

"Assessments of the current business situation rose to their highest level since June 2012," the head of the Munich-based Ifo, Hans-Werner Sinn, told AFP.

"Expectations regarding future business developments reached their most optimistic level in almost three years. The German economy made a promising start to the New Year."

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 112.4 points in January, from 111.6 points in December, while the outlook sub-index climbed to 108.9 points from 107.4 points.

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