Source: Sharecast
The business climate index rose to 88.4 from 87.7 in September.
The expectations index increased to 91.6 in October from 89.8 the month before, while the current situation index dipped to 85.3 from 85.7.
Ifo Institute president Clemens Fuest said: "Companies remain hopeful that the economy will pick up in the coming year."
The manufacturing index improved to -11.7 from -13.2 in September, while the service sector gauge rose to -0.1 from -3.0. The index for trade came in at -21.5 in October versus -23.0 the month before, while the index for construction printed at -15.0, compared to -14.8.
Carsten Brzeski, global head of macro at ING, said: "Despite today's Ifo index increase, the risk of yet another year of stagnation is still alive and kicking. After the excitement and enthusiasm sparked by Germany’s fiscal policy U-turn and its decision to invest significantly in infrastructure and defence this spring, the summer brought a rude awakening.
"The mood in Germany soured and optimism ground to a halt - and not just because of US tariffs or a stronger euro, both of which complicate matters for the export industry. Today's Ifo index reading (as well as last week's PMIs) provides some hope of a possible rebound, although it wouldn't be the first time that a temporary rebound in leading indicators eventually ends up disappearing into thin air."
