The Ifo Institute's business climate index found that the key metric rose from 104.9 in September to 105.3 in October, the Financial Times reported Wednesday.
Ifo's new data suggest that the recovery in Europe's largest economy remains durable and that growth across the eurozone continues to be robust.
Hans Werner Sinn, Ifo president, said the results indicated that the German upswing would "continue next year" despite a 3-percentage-point rise last January in the value added tax.
Word of German business confidence soaring comes as another study of French business confidence has risen, surprisingly, after three consecutive monthly declines.
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