German business confidence improves more than expected in April

German business confidence improved more than expected in April, according to a widely-followed survey.

The Ifo's business climate index rose to 112.9 from 112.4 in March, beating expectations for a reading of 112.5. This marked the index's highest level since July 2011.

The current assessment index edged up to 121.1 from 119.5, surpassing analysts' expectations of 119.5.

Meanwhile, the expectations index fell to 105.2 from 105.7, missing expectations for a reading of 106.0.

Clemens Fuest, president of the Ifo Institute, said: "Assessments of the current business situation improved significantly. In terms of their six-month business outlook, however, companies are somewhat less optimistic. The German economy is growing strongly."

The index for the manufacturing sector dropped to 20.7 in April from 21.1 in March, while the construction index rose to 11.4 from 9.4.

The wholesaling index printed at 19.6 from 18.5, while the retailing index surged to 13.2 from 6.5.