Business confidence in Germany shrank less than expected during the month of July which delivered a signal that companies may have survived and withstood the initial fallout after Brexit that shocked financial markets and troubled business and investor sentiments.

Business climate index fell to 108.3 in July from 108.7 in June, data released by Munich-based Ifo Institute showed Monday. In contrast, the median estimate in a Bloomberg survey of economists was for a decline to 107.5.

In addition, Ifo’s measure of current economic conditions climbed to 114.7 from a revised 114.6, according to the report. A gauge of expectations deteriorated to 102.2 from 103.1.

Although the United Kingdom is struggling hard to re-furnish the devastating effects post Brexit, Germany, Europe’s largest economy despite the former being one of the major export destinations of the latter. A private survey conducted last week showed that German manufacturing output reached the highest level since early 2014 in July, supported by rise in demand.

Moreover, European Central Bank President Mario Draghi said last week that the authority would not hesitate to add additional stimulus into the economy, if needed. While he had predicted that Brexit could weaken the euro-area’s growth by as much as 0.5 percentage point over three years, he later said that those numbers should be treated with “with some grain of caution”, Bloomberg reported.

Meanwhile, the Bundesbank, in its monthly report, last week mentioned that the after effects of Brexit is limited to the short-term only despite difficulty in assessing the entire fallout.