German economic sentiment climbed to a five-month high in February, driven mainly by the confidence that its battle against the COVID-19 pandemic is nearing its end.
EWG is down 1.76% premarket.
The ifo Business Climate Index stood at 98.9 in February, versus 96.0 in January and 93.0 in February 2021. This is the highest level in five months since the level was recorded at 99.1 in September last year.
Indices recorded steep increases, as manufacturing grew to a five-month high of 23.5, services to a four-month higher of 13.5, trade to a five-month high of 6.6, and construction to a three-month high of 8.3.
The latest figures indicate that firms were more optimistic, with order books recording growth even as material shortages continued to impact output. All service industries recorded growth, with hospitality growing back to optimism.
The construction outlook was slightly more pessimistic, despite the current conditions sentiment posting an improvement.