The Ifo Institute said its business climate index rose to 103.3 in February from a revised 101.8 in January, its highest level in more than 14 years, beating the 101.7 forecast of economists polled by AFX News. The index reached its highest level since October 1991, when it stood at 103.5 The February business assessment index rose to 101.9 from a revised 99.7, exceeding analysts' forecasts of 100.3, while the business expectations index increased to 104.8 from a revised 103.8, also beating the consensus forecast of 102.4. "For the third consecutive time, the surveyed firms gave more favourable assessments of both their current situation and their business expectations for the coming six months," said Ifo president Hans-Werner Sinn. He said that in addition to exports, domestic demand now appears to be gaining momentum as well. In manufacturing, the business climate index increased slightly, as manufacturers saw their current favourable situation improving further in the coming six months. And export expectations continue to be highly positive, albeit slightly less than in the previous month, Sinn said. Retailers, meanwhile, said the current situation had improved and were "noticeably more optimistic" about their expectations for the coming six months. Business expectations improved as well in wholesaling and construction. While the surveyed firms did not alter their outlook, construction companies assessed the current situation as somewhat better and wholesalers as clearly more positive. In eastern Germany, the rise in the business climate index improved more strongly than the federal average, Sinn added. Last month, Ifo said the business climate index for January stood at 102.0, the current assessment index at 100.4 and the expectations index at 103.6.