German business confidence improved for a sixth consecutive month in October, as stronger optimism about future prospects outweighed a weaker assessment of current conditions.
The Ifo Business Climate Index rose to 90.2 points from 89.9 in September, exceeding the 90.0 forecast by analysts polled by Reuters. The expectations index increased to 91.6 from 90.4, while the current conditions component fell to 88.8 from 89.5.
The Munich-based Ifo Institute said the improvement reflected greater confidence among companies about the months ahead, despite continuing difficulties in their day-to-day operations. It described the results as evidence that Germany’s economic recovery was continuing.
Manufacturing provided a particularly encouraging signal. Sentiment in the sector returned to positive territory for the first time in more than three years, with companies planning to increase production.
However, the recovery remained uneven across the economy. Services sentiment weakened, while confidence in trade was unchanged. The contrast between improving expectations and softer current conditions suggests that businesses anticipate a recovery whose benefits have yet to spread consistently across sectors.
