BERLIN German business morale improved more than expected in October, following five consecutive months of decline, a survey showed on Wednesday.

The Ifo institute said its business climate index stood at 86.9 versus the 85.9 reading forecast by analysts in a Reuters poll, following a slightly revised reading of 85.8 in September.

Companies were somewhat more satisfied with the current business situation and managers were also less pessimistic about the coming months, the survey showed.

"The German economy sees a silver lining on the horizon," Ifo president Clemens Fuest said.

(Reporting by Rachel More and Maria Martinez, Editing by Friederike Heine)