BERLIN, Dec 17 (Reuters) - German business morale
worsened more than expected in December, a survey showed on
Tuesday, weighed down by companies' pessimistic assessment of
the coming months amid geopolitical uncertainty and an
industrial slump in Europe's largest economy.
The Ifo institute said its business climate index decreased
to 84.7 in December from a revised 85.6 the previous month.
Analysts polled by Reuters had forecast a reading of 85.6.
The survey of around 9,000 company managers found an
improvement in the assessment of current conditions, but the
expectations index posted a surprise fall to 84.4 in December
from 87.0 in November. Economists polled by Reuters had forecast
a reading of 87.5.
The re-election of Donald Trump as U.S. president, paired
with a political impasse at home ahead of snap polls in
February, has added to uncertainty at a time when Germany is
already battling stubborn headwinds.
Already on track for a second consecutive year of
contraction in 2024, next year is forecast to bring further
challenges as the German industrial model stalls, with big names
like Volkswagen looking to scale back production,
and consumer sentiment tumbling on feared job cuts.