By Todd Buell 

FRANKFURT--Business confidence in Germany rose again to kick off the New Year, a widely watched survey showed Monday.

The Ifo Institute's monthly indicator of business confidence increased to 106.7 in January from 105.5 in December, exceeding the 106.5 expected by analysts in a Wall Street Journal survey.

The data suggest growing economic momentum in Europe's largest economy.

Write to Todd Buell at todd.buell@wsj.com