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German business sentiment tumbles in December
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German business sentiment tumbles in December
Dec 17, 2024 1:18 AM

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.

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