BERLIN, April 24 Reuters German business morale rose slightly in April due to an improvement in companies39; expectations, adding to positive signs as Europe39;s largest economy hopes to have dodged a winter recession, a survey showed on Monday.

The Ifo institute said its business climate index stood at 93.6 following a revised reading of 93.2 in March. The increase was weaker than expected, with a Reuters poll of analysts pointing to an April reading of 94.0.

The German economy is likely to have expanded in the first quarter on a rebound in industrial production, the Bundesbank said in a monthly report on Monday, revising its previous forecast for a small contraction.

German business worries are abating, but the economy is still lacking momentum, Ifo39;s president Clemens Fuest said.

Economic momentum in Germany is likely to remain weak for the time being, said Ulrich Wortberg, senior economist at German bank Helaba. At least a recession should be avoided, and we expect a gradual recovery in the course of the year, he added.

The recent banking problems triggered by Credit Suisse and the bankruptcy of Silicon Valley Bank SIVBV.UL appeared not to have spilled over into the real economy.

Banking turmoil has had no impact on business sentiment, Ifo39;s economist Klaus Wohlrabe said. Contagion effects have failed to materialise.

While companies39; expectations improved, they assessed their current situation as slightly worse, the institute said.

This combination…