Germany business confidence dropped for the sixth month in a row in November, as business activity fell sharply across the 15-nation euro zone.
The monthly business climate index calculated by Munich-based economic research institute Ifo fell to 85.8 points in November from 90.2 points in the previous month. Analysts had expected the business sentiment indicator to fall to 88.6 points.
A sub-index of the Ifo survey that measures the current situation in Germany was also lower at 94.8 points, compared with 99.9 in October, while expectations for the next six months dropped to 77.6 points from 81.4 points, the institute said. Analysts had forecast levels of 96.7 and 81.2 points, respectively.
On Friday, a euro zone purchasing managers' index (PMI) for November compiled by data and research group Markit marked its biggest drop on record and fell to its lowest level in the survey's 10-year history.
German Chancellor Angela Merkel warned on Sunday that 'we must expect that next year will be a year of bad news, at least in the first months.'
She said it had grown even harder to predict the progress of the global and German economies.
'We have stabilised the financial markets thanks to a series of measures for the banks, but confidence still has to be found again and the interbanking market must become functional again,' Merkel said.
