German business confidence slipped back in December by more than expected after a surprise improvement in November and the six-month outlook remains cautious, a key survey shows today.
The closely watched business climate index, calculated each month by the Munich-based economic research institute Ifo, said the December reading fell to 103 points from 104.2 points in November, when it had risen from 103.9 points. Market forecasts had been for a December level of 103.5 points.
The head of Ifo, Hans-Werner Sinn, said the survey showed that while companies assessed their current situation less positively, the overall rating was still above the long-term average.
'The outlook for the coming six months continues to be assessed cautiously. The cyclical dynamics are weakening,' Sinn added in a statement.
