Germany’s Ifo survey delivered weaker-than-expected readings in December, confirming that business confidence remains under strain. The headline Business Climate index fell to 87.7 from 88.0, missing forecasts of 88.5. Current Assessment remained unchanged at a subdued 85.6. Expectations also softened to 89.7, pointing to a more cautious outlook.
Sector-level details showed little relief. Manufacturing confidence deteriorated further from -13.8 to -14.8. Services sentiment turned negative again fro 0.6 to -2.1. Trade conditions weakened from -22.6 to -24.6. Construction remained stuck at deeply negative levels of -15.2.
According to Ifo, the year is ending “without any sense of optimism”. The combination of weak current conditions and declining expectations suggests Germany is struggling to build momentum heading into the new year.
