German business confidence fell more than expected in December, indicating that Europe's largest economy could face a protracted soft patch amid international trade tensions.
The closely watched Ifo business-climate index fell to 101 in December from 102 the previous month, missing economists' forecasts of 101.6, Munich-based Ifo said on Tuesday.
"Concerns are mounting in German boardrooms," the think tank said in a statement. Companies participating in the Ifo poll assessed current business conditions as less favorable, and their future expectations also slid.
Germany's economy shrank in the third quarter of the year for the first time since 2015, dented by weaker exports, the European Union's statistics agency said last month.