The tentative recovery in the German economy, the biggest in the 12-country eurozone, looks set to continue, as business confidence reached its highest level in 11 months this month, a key survey showed on Wednesday. The widely watched business climate index, calculated each month by the Ifo economic research institute, edged up to 96.4 points in January, its highest level since February 2004. The barometer had already risen sharply by 2.1 points to 96.2 points in December. The improvement was due to the fact that companies were feeling happier about the outlook over the next six months, Ifo found. "The improved expectations point to a continuation of the recovery, buoyed by a slight strengthening in domestic demand," Ifo President Hans-Werner Sinn said. For its monthly survey, Ifo polls around 7,000 companies about their assessment of current business and their expectations for the next six months.