The increase beat economists' expectations of a modest rise to 95.5. The economy narrowly avoided a widely anticipated recession in the third quarter. Official figures released last month showed that it grew 0.1% in the July-September period compared with the previous quarter, when it contracted by 0.2%. Strong domestic spending helped spark the modest growth.
The Bundesbank, Germany's central bank, said Monday that output is likely to remain flat in the current quarter. Factory orders and industrial production both declined in October, getting the fourth quarter off to a poor start.