Reuters reports that a survey from Ifo institute showed that German business morale hit its highest level in almost two years in March as rising demand for manufactured goods kept factories in Europe's largest economy humming through rising coronavirus infections and lockdown restrictions.

Business climate index shot up to 96.6, the highest reading since June 2019, from an upwardly revised 92.7 in February. Economists had expected an increase to 93.1. Meanwhile, the Current Economic Assessment arrived at 93.0 points in the reported month as compared to last month's 90.6 and 91.3 anticipated. The Expectations Index – indicating firms’ projections for the next six months, climbed to 100.4 in March from the previous month’s 94.2 reading and better than the market expectations of 95.2.

"Despite rising infection numbers, the German economy started spring with confidence," Ifo President Clemens Fuest said in a statement.