German business morale ticks up in December

German business confidence unexpectedly rose in December, a key survey showed on Friday, even as the country ends the year back under a new lockdown to curb a second coronavirus wave.

The Ifo institute’s monthly confidence barometer rose to 92.1 points from 90.9 in November. Analysts surveyed by Factset had expected the index to suffer a third consecutive dip.“While the lockdown is hitting certain sectors hard, overall the German economy is showing resilience,” Ifo president Clemens Fuest said in a statement.

Analysts said the buoyant mood probably reflected optimism about COVID-19 vaccines but the survey closed too early to properly gauge concerns about the latest round of shutdowns.

Europe’s top economy earlier this week ordered schools and non-essential shops to stay closed until at least January 10. The tougher restrictions come after weeks of milder measures failed to halt a rapid rise in COVID-19 infections.

Germany on Friday reported more than 30,000 new coronavirus cases, its second-highest level ever, and 813 new deaths.

Ifo said managers were both more optimistic about their current situation and about Germany’s economic outlook. But it stressed that “a large...