Ifo index surprisingly rises to its highest level in three years in September

The mood in the German economy improved in September despite high energy prices.

The Ifo business climate rose by 1.1 points to 89.9 points, as the Munich Research Institute announced in Munich.

The most important German economic barometer is pointing upwards for the fifth month in a row and has reached its highest level in more than three years.

The Ifo business climate was better than analysts expected.

On average, they had assumed an increase to 89.0 points.

“The German economy is continuing its recovery,” said Ifo President Clemens Fuest, commenting on the results of the monthly survey of 9,000 companies.

The indicator was supported by increased expectations for future business and a better assessment of the current situation.

However, according to the announcement, the automotive industry continues to move “in difficult terrain”.