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 The Ifo institute said Friday its index rose to 114.5 from 114.2 in
May. The rise was unexpected -- the consensus in the markets was for
a modest decline.
Germany is enjoying a strong economic recovery, based on strong
exports and increasing investment in machinery and equipment at home
as businesses expand. Upbeat reports from the manufacturing,
wholesale and construction sectors offset a slight decline in
retailing.
"The Germany economy is enjoying a robust upswing," the institute
said in a statement.
The 7,000 business executives surveyed remained upbeat despite
constant headlines about Greece's financial troubles. EU leaders are
working on a second bailout to keep Athens from defaulting on its
debts after last year's euro110 billion ($160 billion) rescue did
not put the country back on its feet financially.
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Most of the eurozone's economy is doing well despite financial
crises in three smaller countries -- Greece, Portugal and Ireland.
Together they make up only about 6 percent of eurozone gross
domestic product, which means their troubles have so far not held
the overall economy back much. Still, a debt default could spread
turmoil through the financial system.
[Associated
Press]
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