German business confidence hits 6-month high in January

German business confidence rose to its highest level in six months in January, as the outlook for Europe`s biggest economy continues to brighten, the Ifo economic institute said Monday.

German business confidence rose to its highest level in six months in January, as the outlook for Europe`s biggest economy continues to brighten, the Ifo economic institute said Monday.

The Ifo institute`s closely watched business climate index rose to 106.7 this month from 105.5 points in December, the think tank said in a statement.

It was the third monthly rise in a row and was slightly higher than analysts` expectations.

"Companies were far more satisfied with their current business situation and the majority were also optimistic about the business outlook," said Ifo president Hans-Werner Sinn.

"The German economy has gotten off to a good start to the year."

Ifo calculates its headline index on the basis of companies` assessments of current business and the outlook for the next six months.

The sub-index measuring current business rose to 111.7 points, the highest level since July 2014, and the outlook sub-index increased by 0.7 point to 102.0 points, the institute said.