BERLIN (AP) — A closely watched survey shows German business confidence hit another record high in November, as firms' optimism about the future offset their slightly more pessimistic feelings about their current situation.

The Munich-based Ifo Institute said Friday its business climate indicator climbed to 117.5 points in November from 116.8 the previous month.

Businesses assessed their current situation as slightly worse, at 124.4 points from 124.8 the previous month, but their expectations for the next six months rose to 111.0 points from 109.2 in October.

The index is based upon about 7,000 survey responses from firms in manufacturing, construction, wholesaling and retailing.

Germany's economy is expected to grow by as much as 2 percent this year amid record-high employment and rising real wages.