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German business morale rebound fuels recovery hopes

BERLIN, Nov 24 (Reuters) – Europe’s biggest economy showed signs of brushing off its energy crisis with Russia and supply chain headwinds as German business morale rose further than expected in November, according to a survey released on Thursday.

“The recession could prove less severe than many had expected,” the Ifo institute said in a statement.

The institute reported a business climate index of 86.3, higher than analysts’ forecast of 85.0 in a Reuters poll, and following a revised reading of 84.5 in October.

The improved outlook follows unexpected economic growth in the third quarter and comes as full gas storage in Germany curb fears of a supply crunch this winter.

Nonetheless, the government is expecting a recession next year, with the economy forecast to contract by 0.4%. The government’s panel of economic advisors more recently forecast a less severe 0.2% slump in 2023.

While companies were somewhat less satisfied with their…

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