The mood in the executive floors of German companies has brightened for the fourth month in a row since the turn of the year.
The Ifo business climate index rose in January to 90.2 points from 88.6 points in the previous month, as the Munich Ifo Institute announced on Wednesday in its survey of around 9,000 executives.
Economists interviewed by the Reuters news agency had expected the increase to be of this magnitude.
However, companies were less satisfied with current business than in December, while expectations for the next six months increased.
"The German economy is starting the new year with more confidence," said Ifo President Clemens Fuest.
According to the latest S&P Global Purchasing Managers' Index, the economy in this country is looking to grow again.
Germany could be spared a winter recession, since the gross domestic product from October to December 2022 stagnated compared to the previous quarter, according to preliminary findings from the Federal Statistical Office.
The federal government does not expect a recession in its forthcoming annual economic report either.
Expected some growth
As the Reuters news agency learned from people familiar with the matter, the government now expects growth of 0.2 percent in the current year, after a minus of 0.4 percent was estimated in October.
Federal Economics Minister Robert Habeck will present the new economic forecasts on Wednesday afternoon in Berlin.