By Maria Martinez

BERLIN (Reuters) -German business morale improved unexpectedly in August to its highest level in 15 months, a survey showed on Monday, although analysts warned the economic outlook remained weak.

The Ifo institute said its business climate index increased to 89.0 in August from 88.6 in July, the highest since May of last year. Analysts polled by Reuters had forecast a reading of 88.6.

“The improvement is not enough to create real hopes for growth,” said Alexander Krueger, chief economist at Hauck Aufhaeuser Lampe. “Much is based on expectations for the future, the fulfilment of which is uncertain.”

The increase was due to improved expectations among companies. However, the current situation was assessed as slightly worse, Ifo said.

“The recovery of the German economy

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