The business climate in Germany, Europe's economic engine, improved in October according to a monthly index from the German analysis institute Ifo.
Ifo's index, which measures the expectations among 9,000 entrepreneurs, rose to 87.3 in October, up from 86.4 in September. This is the highest rating since June and above the average forecast among analysts of 86.9.
"The German economy has broken the downturn for the time being," says Ifo chief Clemens Fuest in a press release.
Ifo's sub-index for the current situation in October rose to 86.5, which can be compared to the expected 85.6.
The index comes after it was also hinted at a German turnaround – after months marked by unexpectedly harsh economic headwinds for German industry – in a preliminary purchasing managers' index on Thursday.
The German central bank's economists expect 2024 to end with a quarter of zero growth after the recession in quarters two and three.
