BERLIN, Oct. 25 (Xinhua) -- Business sentiment in Germany showed signs of recovery in October after four consecutive months of decline, according to a survey released Friday. This uptick brings a glimmer of hope to the country's struggling economy, which has faced persistent challenges, particularly in the manufacturing sector.

The Munich-based ifo institute of economic research reported that its business climate index rose to 86.5 points in October, up from 85.4 in the previous month.

The index, covering four major sectors, recorded gains in manufacturing, services and trade in October, while the construction sector declined. Meanwhile, the manufacturing sector managed to halt its downward trend after hitting a four-year low in September, ifo said.

Sentiment among German companies has improved, as they have expressed increased satisfaction with current business conditions and slightly more optimism about the months ahead, said ifo president Clemens Fuest. The German economy has halted its decline for the time being, he added.

Following a 0.1-percent contraction in the second quarter, the federal government has forecast a 0.2 percent decline for the entire year for Europe's largest economy. The latest German composite PMI index from S&P Global increased from 47.5 to 48.4 in October, indicating a slight easing of the downturn in the economy, although it remains below the 50 threshold separating growth from contraction.

Germany's economy could achieve modest growth in the fourth quarter, outperforming previous expectations. Nevertheless, low manufacturing output continues to weigh on the economy, underscoring persistent challenges such as high energy costs, labor shortages, and weak domestic and global demand. As the PMI index showed, the decline in manufacturing output eased in October, with the index standing at 42.4. Enditem

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