Business Index Jumps Unexpectedly

The respected Ifo business climate index rose beyond economists' expectations in April after two consecutive monthly declines. The Munich-based economics institute, which based its findings of a survey of 7,000 companies, said the index rose from 95.4 in March to 96.3 in April. The increase suggests that Germany's slow economic recovery is still on track, although Ifo President Hans Werner Sinn said it was too early to speak about a solid upturn. The institute said the improvement in business sentiment could be traced to the fall of the euro against the dollar and the resulting improvement in export prospects. Exports have been the main driver of Germany's weak economic revival. Analysts say there is still little sign that the country's domestic economic performance is going to improve soon.