Munich, Confidence in the German economy is ending 2016 on a high, with its index reporting today the highest level in three years.

The Munich-based Ifo institute said that its popular business confidence index climbed to 111 points this month from 110.4 in November. German news agency DPA reported today that the indicator now stands at its highest level since February 2014. Analysts had forecast a rise 110.6 points in December.

Ifo said that businesses were slightly more optimistic about the next six months than they were in November, AP reported. The institute also said that here was a notable improvement in sentiment among German manufacturers with demand up significantly and order backlogs growing.

The business confidence index is a survey that includes 7,000 German firms.

Source: Qatar News Agency