Germany's Ifo Index Beat Expectations in August

By Maria Martinez

German business sentiment rose in August, beating forecasts and increasing for the fourth consecutive month, the Ifo Institute said Tuesday.

"The German economy is on the road to recovery," Ifo said.

The Ifo business-climate index came in at 92.6 points in August from a downwardly revised 90.4 points in July. Economists surveyed by The Wall Street Journal had forecast it at 92.0 points.

Companies' assessment of their current situation went up notably, rising to 87.9 points in August from 84.5 points in July. Expectations also leaped slightly higher, the component rising to 97.5 points from a revised 96.7 points in July, Ifo said.

The Ifo index is based on a poll of about 9,000 companies in manufacturing, services, trade and construction.

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