Surprise rise in German business sentiment

German business sentiment improved unexpectedly in September to its best since June 2007, although slower growth in Europe's dominant economy risks piling more pressure on its struggling eurozone peers in coming months.

The Ifo think-tank's business climate index, based on a monthly survey of some 7,000 firms, rose for a fourth consecutive month to 106.8 from 106.7 in August. Despite signs of a slowdown many businesses remain upbeat, especially about prospects in fast-developing countries.