German economic confidence declined in December, although the economic outlook for the coming six months remained positive despite uncertainty about the make-up of the next government, the ZEW Center for European Economic Research said in its monthly report.
The research institute's economic sentiment indicator for Germany stood at 17.4 points in December, down from 18.7 in the previous month, and below the long-term average of 23.7 points, the center said.
The assessment of the current economic situation in the country edged up by 0.5 point to 89.3.
"Overall, the outlook for the German economy in the coming six months remains positive. The current state of uncertainty surrounding the government formation in Germany has not had any significant impact on the assessment of the economic outlook. Financial market experts, however, expect to see negative effects resulting from this with regard to the Brexit negotiations as well as EU reforms," ZEW President Achim Wambach said.
Meanwhile, economic expectations for the euro area in December fell by 1.9 points, with the corresponding indicator currently standing at 29.0 points. The current economic situation index for the bloc rose 2.9 points to stand at 50.7 points.
Germany's center-right Chancellor Angela Merkel is still trying to form a new governing coalition after federal elections in September.
