The Ifo Business Climate Index for Germany fell slightly by 0.3 points in December, reaching 87.6, according to the Munich-based Ifo Institute. The year ended without a sense of economic revival, as reflected in the generally dampened mood among companies across most manufacturing sectors. New orders have decreased, and many industrial firms plan to scale back production. The overall outlook remains subdued, with few industries escaping the decline in sentiment.

In the absence of a clear industrial policy, hopes are pinned on planned increased government spending to improve the situation. The data signals cautious concern within the business community about growth prospects heading into the new year.