German business morale rose slightly in April due to an improvement in companies' expectations, adding to positive signs as Europe'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. "German business worries are abating, but the economy is still lacking dynamism," Ifo's president Clemens Fuest said.

While companies' expectations improved, they assessed their current situation as slightly worse, the institute said. (Reporting by Rachel More, Miranda Murray and Maria Martinez)