The Ifo Business Climate Index rose to 111.0 points in February from 109.9 (seasonally adjusted) points last month. Assessments of the current business situation reached their highest level since August 2011. Companies also expressed greater optimism about the months ahead. After making a cautious start to the year, the German economy is back on track.

In the manufacturing sector, the index rose. Manufacturers were far more satisfied with their current business situation. After deteriorating in January, the business outlook also brightened slightly. Current demand and the number of incoming orders picked up markedly. This positive development was mainly driven by food producers, as well as mechanical and electrical engineering firms.