German business confidence improved in December, survey results from the ifo institute showed Friday.
The business confidence index rose to 92.1 in December from revised 90.9 in November. The expected score was 90.0.
While the lockdown is hitting certain sectors hard, overall the German economy is showing resilience, Clemens Fuest, ifo President said.
Both current assessment and expectations advanced from November. The current conditions indicator came in at 91.3, up from 90.0 a month ago. Economists had forecast the reading to fall to 89.0.
The expectations index improved to 92.8 from 91.8, which was above the expected reading of 92.5.
The increase in business confidence for December supports the assessment that Germany will avoid a contraction in the fourth quarter, Melanie Debono, an economist at Capital Economics, said.
But the new tightening in coronavirus restrictions, which came into effect this week, means that activity will remain subdued at the start of the new year, before picking up in the second quarter, the economist added.