German business confidence is at its highest for over two years, according to a closely watched study.

The west German business sentiment index of the Ifo economics institute climbed from September's 92.0 to 94.2 this month – its highest level since February 2001.

Based on reports from hundreds of German firms, the barometer was boosted by a rise in the long-depressed current conditions component from 79.2 to 81.1. The index of future expectations, meanwhile, jumped from 105.2 to 107.9.

According to Ifo president Hans-Werner Sinn, the improvement in the index chimes with recent forecasts of "a modest economic recovery starting in the fourth quarter of 2003."

Data sourced from: multiple sources; additional content by WARC staff