German business morale rose far more than forecast in November, reaching its highest level since April 2012, in a sign that Europe’s largest economy is steadily recovering after a weak start to the year.

The Munich-based Ifo think tank said today its business climate index, based on a monthly survey of some 7,000 firms, rose to 109.3, beating the consensus forecast for a rise to 107.7 and surpassing even the highest estimate for a reading of 108.5. The November figure compared with a reading of 107.4 in October.

The euro rose and German Bund futures extended losses after the index was published. (Reuters)