Germany's influential Ifo business sentiment indicator fell for the seventh month in a row in December but by less than expected, while optimism improved for a brightening outlook ahead.
The Ifo economic institute said today the headline west German business climate index eased to 87.1 from 87.3 in November but was just above the consensus forecast in a Reuters poll of analysts for a decline to 87.0.
"The decline was the result of a clear worsening of the current business situation, whereas the expectations for the next six months turned upwards for the first time since May," Ifo President Mr Hans-Werner Sinn said in a statement accompanying the data.
Manufacturing expectations rose to 97.9 from 95.8 in November. Current trading conditions fell to 76.8 from 79.0.
Business expectations rose in all sectors except wholesaling, Ifo said. The worsening of current conditions in west Germany was mainly due to poor wholesaling and retailing demand.
The Ifo index, based on a monthly survey of around 7,000 German firms, has a long track record of heralding growth trends in Germany and is also seen as one of the key performance indicators for the whole euro zone.