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German business sentiment improved more than expected in May, survey data from the ifo Institute revealed on Tuesday.
The business confidence index rose to 99.2 in May from 96.6 in the previous month. The reading was also above economists' forecast of 98.2.
Current assessment as well expectations also strengthened in May. The current conditions index came in at 95.7 versus 94.2 in the previous month and the expected reading of 95.5.
Likewise, the expectations index advanced to 102.9 from 99.2 a month ago. This was also better than the forecast of 101.4.
The institute said the German economy is picking up speed.
