German business confidence rises

Berlin - German business confidence rose for the third consecutive month in January as plunging oil prices, the slump in the euro and the European Central Bank's announcement of a new stimulus plan boosted the mood in boardrooms in Europe's biggest economy.

The Munich-based Ifo economic institute said on Monday its closely watched business confidence indicator rose to a higher-than-forecast 106.7 points this month from a December reading of 105.5.

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Analysts surveyed by dpa-AFX had expected a rise to 106.5 points.

Based on a monthly survey of about 7 000 companies, the indicator adds to signs that the German economy gained momentum at the start of the new year after a bout of weakness during the middle of 2014.

Business leaders were surveyed by the Ifo institute against the build-up to last week's ECB announcement of a more-than 1-trillion-euro stimulus plan.

German investor confidence surged to an 11-month high in January according to a survey released last week by the Mannheim-based ZEW institute.