German investor confidence climbed "slightly" in October but remained at a low level, a key survey said today, as Europe's top economy braces for a recession triggered by soaring energy costs.
The ZEW institute's economic expectations index unexpectedly inched up to -59.2 points, from -61.9 points in September.
Analysts had predicted a fourth month of declines in a row for October, as record-high inflation and skyrocketing energy prices in the wake of the Ukraine war weigh on the German economy.
But ZEW president Achim Wambach said despite respondents' "slightly" improved expectations for the coming six months, the overall picture remained bleak.
He noted that the survey, in which a negative number means that most investors are pessimistic, also recorded a steep drop in investor confidence about Germany's current economic situation.
That reading fell by 11.7 points in October to -72.2 points.
"The current economic situation is once again assessed as significantly worse than in the previous month," Wambach said in a statement.
"The probability that real gross domestic product will decline in the course of the next six months has also increased considerably. Overall, the economic outlook has deteriorated again," he said.
The German government last week said the country was forecast to descend into recession next year and shrink by 0.4% because of the fallout from Russia's war in Ukraine.
