ifo Institute announced on Thursday its survey of about 9,000 businesses revealed that sentiment among German companies continued to improve in September.

According to the report, ifo Business Climate Index increased to 93.4 in September from a revised 92.5 in August (originally 92.6). That was the highest reading since February.

Economists had forecast the indicator to come in at 93.8.

The current situation sub-index climbed to 89.2 this month from 87.9 in August, as the companies once again assessed their current situation as better than in the previous month. Meanwhile the gauge measuring companies' expectations for the coming months rose to 97.7 from 97.2, reflecting anticipations of further recovery of the business.

On the sector level, the business sentiment improved in manufacturing, trade and construction, but it worsened in the service sector, due to less optimistic expectations.