By Maria Martinez
German business sentiment improved in December, the ifo Institute said Wednesday, beating forecasts.
The ifo business-climate index came in at 96.3 points in December, rising from an upwardly revised 95.1 in November, the ifo Institute said. Economists surveyed by The Wall Street Journal had forecast the ifo business climate at 95.5 points.
The assessment of the current situation improved to 98.8 points from an upwardly revised 98.0 in November, while expectations also rose to 93.8 points in December from 92.3 points in November, said the institute. Economists polled by The Wall Street Journal forecast figures of 98.0 and 93.0 points, respectively.
"The German economy is heading into the New Year with more confidence," ifo's President Clemens Fuest said.
The closely watched manufacturing sector "recovered somewhat," the institute said.
"This was due to companies' considerably less pessimistic expectations. In contrast, their assessment of the current situation worsened a little," ifo said.
In the service sector, the indicator rose to its highest level in six months, as service providers are more satisfied with their current situation, ifo said.
The index is based on a poll of about 9,000 companies in manufacturing, services, trade and construction.
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