Business confidence among German executives surged to a more-than-two-year high in September, with optimism in boardrooms across the country rising faster than forecast by analysts.

The Ifo economic institute reported Monday its September index gauging the mood of managers rebounded to 109.5 points in September after falling to 106.3 points in the previous month as industry put aside earlier worries about the fallout of the UK's vote to leave the European Union.

"German industry is expecting a golden autumn," Ifo President Clemens Fuest said in a statement.

Labor market intact

The institute's monthly indicator is now at its highest level since May 2014, with the most recent gain coming on rises in confidence across all industrial sectors. Ifo said the construction sector looked particularly confident with regard to business expectations.

The September reading came despite a string of recent disappointing hard economic data for Europe's powerhouse which had raised worries that the nation's growth rate might lose momentum in the coming months.

But market experts pointed out Monday that the fundamentals were sound, pointing in particular to a continuously robust labor market and strong domestic demand. There was also a jump in the manufacturing sector's export expectations.

hg/sri (Reuters, dpa)