German corporate sentiment unexpectedly improved in January as firms took a more upbeat view of business prospects.
The Munich-based Ifo economic research institute said toay its business climate index, based on a monthly poll of around 7,000 firms, rose to 103.4 after 103.0 in December.
Ifo received some 75 per cent of the responses to its survey before this week's stock market slump, which has now reversed.
But Ifo economist Hans Russ said German firms were not showing any particular signs of nervousness about the market turmoil.
"On the whole, the condition of firms in German industry and trade continues to be robust," Ifo said.
In further evidence that corporate Germany remains healthy, bellwether conglomerate Siemens delivered stronger-than-expected first-quarter results today.