German business sentiment improves in November - Ifo
German business sentiment improved in November, according to a survey released on Thursday by the Ifo Institute.
The business climate index rose to 86.3 from 84.5 in October, coming in above consensus expectations for a reading of 85.0.
Meanwhile, the expectations index increased to 80.0 in November from 75.9 the month before, while the current situation index printed at 93.1 versus 94.2.
The manufacturing gauge improved to -11.7 in November from -15.4 the month before, while the services sector index rose to -5.4 from -8.5. The index for trade came in at -26.9 compared to -31.9 and the construction gauge was -21.6 in November versus -24.0 in October.
"While companies were somewhat less satisfied with their current business, pessimism regarding the coming months reduced sharply," said Ifo president Clemens Fuest. "The recession could prove less severe than many had expected."
ING said: "The strong improvement of the Ifo index adds to recent glimmers of hope.
"However, this simply reflects a stabilisation at low levels and there is no reason to change the recession call, yet. The sheer fact that things are no longer getting worse doesn't mean that improvement is around the corner."