Data published by the Ifo Institute showed that in February the German business climate index rose to 98.9 points compared with 96.0 points in January (revised from 95.7 points). Economists had expected the index to rise only to 96.5 points. Meanwhile, the current conditions index rose to 98.6 points compared to 96.2 points in January (revised from 96.1 points) and the forecast at 96.6 points. The expectations index also rose in February to 99.2 points from 95.8 points in January (revised from 95.2 points). Economists had expected the index to rise to 96.1 points.
Commenting on the latest data, the Ifo economist said that the German economy expects the end of the coronavirus crisis, but the situation in Ukraine remains a risk factor. "Higher energy prices as a result of the crisis in Ukraine will certainly have a negative impact on business," the economist said, adding that sentiment in the manufacturing sectors has improved significantly, but bottlenecks continue to be a problem.