The German business climate index rose to a seasonally adjusted 86.5 in October from 85.4 last month, ending a four-month decline, according to data from the Munich Institute of Economic Research.
Of the four indicators that make up the business climate index, manufacturing, services and trade all rose on a month-on-month basis, while construction fell.
Klemens Pfister, director of the MÃ 1/4 nchen Institute for Economic Research, said German businesses were more satisfied with their current business conditions and had improved their outlook for the coming months, but remained cautious overall.
The Business Climate Index of Munich Economic Research Institute is regarded as the weather vane of German economic development, which has important reference value for observing German economic situation.