German corporate sentiment unexpectedly improved in November after rising for the first time since April.
The Ifo economic think tank said its business climate index, based on a monthly poll of some 7,000 firms, rose to 104.2 from 103.9 in October. Analysts had expected a decline.
"The business expectations are largely unchanged and still slightly positive," Ifo said. "With regard to future exports, optimism has strengthened despite the rising euro exchange rate."
A separate Ifo gauge of current conditions rose in November to 110.4 from 109.6 the previous month. The survey's expectations component dipped to 98.3 from 98.6 in October.
German economic growth rebounded in the third quarter, buoyed by domestic demand, but economists say the pace of expansion is probably slowing.
Last year, Europe's largest economy grew by 2.9 per cent, its fastest in six years.