BERLIN (AP) — Germany's businesses are more optimistic than they've been in almost three years, according to a closely watched survey by Munich's Ifo institute released Thursday.

Sentiment among German managers rose to 101.8 points in June, from 99.2 in May, its highest since November 2018. The upbeat mood was partly spurred by declining coronavirus infections and the reopening of large parts of the economy.

Analysts had expected a more moderate increase in optimism from the questionnaire of about 9,000 businesses conducted every month.

One concern raised by manufacturing companies was ongoing supply shortages. German automakers have been among those hit by a lack of semiconductors, resulting in delivery delays for new cars.