The closely watched West German business climate index fell to 87.1 in December from 87.3 in November, and was up from 85.9 in December last year, the Ifo institute said today. The figures came in slightly below forecasts, with most economists tipping a rise to 87.5 in December. The December business assessment index was at 76.8, down from 79.0 in November, and down from 77.6 in December last year. The December business expectations index was at 97.9, up from 95.8 in November, and up from 94.6 in December last year. Ifo president Hans-Werner Sinn said the fall in the overall index in December was the seventh in secession.
Sinn added that the decline in the business assessment index was mainly due to the "unfavourable development in wholesale and retail." In an interview published released today, Sinn said the Germany economy would not witness a "lasting recovery" in 2003, but instead a "sluggish upward trend." //www.fxcentre.com