Business climate index at 91.1 vs expected 91.2
Unexpected fall in current situation index
Analyst No reason to start partying

BERLIN, Feb 22 Reuters German business morale improved in February for the fourth consecutive month, adding to signs that Europe39;s largest economy is recovering despite the energy crisis and high inflation, a survey said on Wednesday.

The Ifo institute said its business climate index stood at 91.1 following a revised reading of 90.1 in January.

A Reuters poll of analysts had pointed to a February reading of 91.2.

The German economy is gradually working its way out of a period of weakness, said Ifo President Clemens Fuest.

Business sentiment is forecast to continue improving in the coming months, according to Union Investment39;s chief economist Joerg Zeuner.

This is because the economy is expected to brighten up towards the summer, as declining inflation and lower energy prices will no longer have such a strong impact on consumers39; purchasing power, Zeuner said, adding that this should benefit the retail sector.

LBBW39;s JensOliver Niklasch forecasts an improvement in the economic situation, although he warns that minor setbacks are to be expected, particularly in the construction sector and parts of the automotive industry.

Expectations for the next six months improved considerably, rising to 88.5 in February from 86.4 in January. However, the current situation component weakened, falling to 93.9 in February from 94.1 in…