German business sentiment surged to its highest level in 16 months during August, driven by a pickup in the manufacturing sector

German business sentiment surged to its highest level in 16 months during August, driven by a pickup in the manufacturing sector. It suggests that Europe's largest economy is gaining momentum following strong growth in the second quarter. The Ifo think tank said on Tuesday its business climate index, based on a monthly survey of some 7,000 firms, rose to a better-than-forecast 107.5 in August, its fourth consecutive rise and the highest level since April 2012.