A Boost In German Business Confidence Just Gave Angela Merkel Some Room To Breathe

Germany's businesses are getting more confident, according to data just out from the IFO institute.

The institutes's overall confidence figure jumped to 104.7 from 103.2, with 100 representing the long-term average for Germany. That's a welcome relief after some dismal growth figures and signs that Europe's biggest economy is slowing down.

Analysts had expected a dip in the business climate part of the index, and a small improvement in the expectations part of the index. Both improved more than expected.

Germany policy makers have come under increasing pressure to revitalise their growth figures: despite the slowdown and low inflation, the government is refusing to budge from its goal of Germany's first balanced budget since 1969.