German business confidence held at a two-year high in November, with the upbeat sentiment unchanged despite the election of Donald Trump as US president, the Ifo economic institute said today. 

"The economic upturn in Germany remains intact. The German economy seems to be unfazed by the election of Donald Trump as US President," the Munich-based Ifo in a statement said. 

Ifo's headline business confidence index reached 110.4 points in November, unchanged from the October reading, and the highest level since April 2014. 

The survey suggests that the "German economy is in good shape," said analysts at Capital Economics.

The construction sector showed the greatest optimism about the business climate, with a sub index reaching a new record high. 

Wholesaling was also positive, but the manufacturing sector signalled less optimism about the coming six months, "mainly due to less dynamic export prospects".  

Trump's taking of the White House has sent shockwaves through the global economy, with export-dependent economies particularly jittery as the populist has pledged to reverse free trade treaties. 

This week, he promised to drop the Trans-Pacific Partnership - a vast agreement between 12 countries including Japan, Australia and Peru. 

While he has not spoken specifically about a planned free trade deal between the EU and the US, German Chancellor Angela Merkel admitted last week that the accord would now not be completed.

Meanwhile, the German economy halved its growth rate to 0.2% in the third quarter despite rising private consumption and higher state spending as weak foreign trade slowed overall activity in Europe's biggest economy. 

Confirming a preliminary reading for growth, the Federal Statistics Office said that net foreign trade subtracted 0.3 percentage points from GDP growth as exports fell by 0.4% on the quarter and imports rose by 0.2%. 

State spending increased by 1% on the quarter, contributing 0.2 percentage points to growth. 

German authorities are spending billions of euros on accommodating and integrating more than one million migrants who have arrived since the start of 2015, many from war zones such as Syria and Iraq. 

German household spending rose by 0.4% on the quarter, also adding 0.2 percentage points to GDP in the three months through September as consumers benefitted from record-high employment, rising real wages and low borrowing costs.

Investment in construction edged up 0.3% in the third quarter as Germany's growing population, increased job security and record-low interest rates fuel a property boom.

But construction did not contribute to growth. 

In a sign that companies are holding off investment despite the European Central Bank's policy of cheap money, investment in plant and equipment fell by 0.6% on the quarter.