German business confidence little changed in October

German business confidence fell just slightly in October, reflecting the resilience of Europe's biggest economy in the face of numerous challenges, including the Volkswagen scandal, the Ifo economic institute said Monday.

The Ifo institute's closely-watched business climate index slipped to 108.2 points in October from 108.5 points in September, Ifo said in a statement, a much shallower drop than analysts had expected.

Ifo calculates its headline index on the basis of companies' assessments of the current business environment and the outlook for the next six months.

The sub-index measuring current business fell to 112.6 points, its lowest level since March, while the outlook sub-index rose to 103.8 points, the institute said.

"Companies were slightly less satisfied with their current business situation than in September. Optimism with a view to future business developments nevertheless continued to grow," said Ifo president Hans-Werner Sinn.

"The German economy is proving remarkably resilient in view of this autumn's multiple challenges," he said, in reference to Europe's refugee crisis and the slowdown in China.

Even the Volkswagen pollution-cheating scandal "has had no impact on the German automotive industry," Sinn said.

"The climate index for the automotive sector even continued to rise this month. Assessments of the current business situation and business expectations both improved. Firms plan to ramp up production. Exports, however, are not expected to provide further stimuli," he added.