FRANKFURT--German business sentiment unexpectedly increased in
November, a closely watched survey showed, suggesting Europe's
largest economy is slowly finding its footing after struggling to
expand in recent months.
The Ifo Institute said Monday that its monthly business
confidence survey rose to 104.7 from 103.2 in October, breaking a
string of six-straight monthly declines. Economists surveyed by The
Wall Street Journal had expected a reading of 103.
"The downturn in the German economy has ground to a halt for the
moment at least," said Hans-Werner Sinn, president of the Ifo
Institute.
Germany's economy stalled in the spring and summer, with a
slight contraction in output during the second quarter offset by a
small increase in the third. Many analysts expect only weak growth
in the fourth quarter.
Still, economists expect Germany's expansion to gather pace next
year, aided by low unemployment, falling oil prices and the recent
depreciation of the euro, which should aid the country's
exporters.
Monica Houston-Waesch contributed to this article.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires