German economy stable but business environment remains fragile The German economy is showing signs of improvement, after the European powerhouse avoided recession in the third quarter. Investor sentiment rose to 11.5 points from 3.6 in October. It is the first reported rise in sentiment since December last year. However, many analysts believe the economy is simply stabilising and the economic environment as a whole remains fragile. Germany posted a 0.1 percent growth rate for October thanks mainly to a boost in consumer spending.