The mood in the German economy surprisingly deteriorated in December. The Ifo business climate fell by 0.8 points to 86.4 points compared to the previous month, as the Ifo Institute announced on Monday in Munich. Analysts, however, had expected an increase in the most important leading indicator for the German economy. An average of 87.7 points was expected.
The approximately 9,000 companies surveyed rated both the current situation and expectations of future business less favorably. “The economy remains weak even during the Christmas season,” commented Ifo President Clemens Fuest. The business climate deteriorated in industry, trade and construction. Only in the service sector did the mood brighten slightly.