A key survey of Germany's business leaders has hit the highest levels in nearly 50 years this month, putting Europe's biggest economy on course to extend its surging growth and pull the broader European economy to its best quarter in nearly a decade.

The Ifo Institute's benchmark survey of the outlook for Germany's top 7,000 business leaders blew past estimates to rise to 117.5 this month, the highest since records began in 1969. The polls assessment of current conditions was pegged at an 8-year high even as CEOs and company presidents acknowledged the current impasse in talks to build a coalition government after September's indecisive national elections.

"Sentiment among German businesses is very strong," said the Ifo's Clemens Fuest. "This was due to far more optimistic business expectations. The German economy is on track for a boom."

The euro jumped to 1.1875 against the U.S. dollar following the release, the highest level since Oct. 13, while benchmark Germany government bond yields rose 2 basis points to 0.37%.

The Ifo reading followed private sector data from IHS Markit Thursday showing Europe's economy is heading into the final months of the year riding its hottest pace of growth since 2011 with job creation and price increases supporting the region's recovery.

Markit's benchmark Composite PMI reading of economic activity around the currency area rose to 57.5 this month, well ahead of the 56.0 reading recorded in October and the fastest pace of growth since April 2011. Readings in France and Germany, the regions two biggest economies, were also well ahead of expectations and translate into a fourth-quarter GDP growth rate of 0.8%, the best in a decade.

"Jobs are being created at the fastest rate since the dot-com boom, yet despite this increase in operating capacity firms are struggling to meet demand," said IHS Markit's chief economist Chris Williamson. "Backlogs of uncompleted work are growing at the fastest rate for over a decade, often resulting in a sellers' market as customers struggle to source goods and services. Prices are consequently rising at an increased rate."

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Editors' pick: Originally published Nov. 24.