German business confidence surprisingly weakens

ANKARA

Germany's business climate index unexpectedly dropped to a 3-month low in December, according to data from a Munich-based research institute on Monday.

The Ifo Business Climate Index decreased for the second consecutive month to 86.4 points in December, from a downwardly revised 87.2 points in November.

The market expected the figure would hike to 87.8 in December.

"As the year draws to a close, the German economy remains weak," said Clemens Fuest, the president of Ifo Institute for Economic Research.

The Ifo Business Expectations Index fell to 84.3 this month, down from 85.1 in November.

By industry, sentiment worsened among manufacturers to minus 17.2 in June, traders to minus 26.6 and constructors to minus 33.1.

In the service sector, on the other hand, the business climate improved slightly to minus 1.7 from minus 2.5 in the prior month.