The Ifo Business Climate Index rose to 112.3 points in March from 111.1 (seasonally adjusted) points last month, reaching its highest level since July 2011. The upwards trend in assessments of the current business situation continues unabated. The business outlook for companies also improved again this month. The upswing in the German economy is gaining impetus.

In the manufacturing sector, the index also rose to its highest level since July 2011. This was primarily due to markedly more optimistic expectations on the part of manufacturers. Assessments of the current business situation also improved. This very positive development was partly driven by a renewed upturn in demand. Prices continued to follow an upwards trend. The index rose in nearly all key segments of manufacturing.