The Ifo Business Climate Index for industry and trade in Germany fell slightly to 106.6 points in April from 106.7 points in March, the Ifo Institute for Economic Research reported on Monday.
According to the Munich-based think tank, although companies were somewhat less satisfied with their current situation, their business expectations brightened once again.
The climate indexes in manufacturing and construction both improved, while the indicators in wholesaling and retailing fell markedly, Ifo reported.
"The mood in the German economy remains positive... The moderate upturn in the German economy continues," Ifo president Clemens Fuest said.
The Ifo Business Climate Index, considered the most important barometer for the German economy, is based on about 7,000 monthly survey responses from firms in manufacturing, construction, wholesaling and retailing.