Germany's closely-watched business climate Ifo index fell for a sixth consecutive month in November, confirming the fragility of German economic growth, but the drop was milder than expected, raising hopes that the risks of a full-blown recession had subsided.
The Ifo institute's headline west German business climate index fell to 87.3 from 87.7, beating expectations for a drop to below 87.
The fall in the overall index was tempered by an improvement in companies' assessment of the current business situation, to 79.1 from 77.9 in October. However, expectations about the future continued to worsen, with that part of the survey falling to 95.8 from 97.9.
Ifo president Hans-Werner Sinn said that, with the current situation index now up three months in succession, the economy in western Germany appeared to be stabilising, with the economy in better shape than many people's expectations suggest.
