German Ifo Institute released its business confidence figures for Germany on Wednesday. German business confidence index rose to 107.7 in May from 106.7 in April, exceeding expectations for an increase to 106.8. April’s reading was revised up from 106.6.

“Business confidence in German industry and trade has improved in all four main sectors. In construction a new record high has even been reached,” Ifo President Clemens Fuest said.

“The German economy is growing at a robust pace,” he added.

The Ifo current conditions index increased to 114.2 from 113.2. Analysts had expected the index to remain unchanged at 113.2.

The Ifo expectations index climbed to 101.6 from 100.5, beating expectations for a rise to 100.8. April’s reading was revised up from 100.4.

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