Berlin - Business confidence in Germany has defied the current global economic gloom by chalking up an unexpected increase in January, a key survey released Tuesday showed.

A major test of the economic mood in Europe, the closely- watched Ifo business confidence index marked the start of the new year by edging up to 83 points this month.

Analysts had predicted that it would fall to 81.5 points.

Based on a survey of 7,000 German executives and drawn up by the Munich-based Ifo economic research institute, the index plummeted in December to 82.7 points, which was its lowest point since the 1980s oil crisis. (dpa)