FXstreet.com (Barcelona) - Business climate has deteriorated further in Germany in November, following declining trend going on since the beginning of the year, according to data provided by the IFO economic research institute.

The business climate index has dropped to 103.0 in December, from 104.2 in November, while the expectations index edged down to 98.2 from 98.3 posted in November. The business climate reading is the worst result posted in the last two years.

The business climate index for manufacturing declined to 16.6 points in December after posting 19.3 points in October. The other negative contributor of business climate index was retailing, which posted a drop to the level of -15.2 points from -9.3 points in November.

Construction component improved slightly in December posting -20.5 poins from the -21.3 points in the previous month and the retailing component also rose in the December reaching the -9.3 points from the -15.2 points posted in November.

Altough the firms assess current situation less positively, the index is still above the long - term average. Companies are very prudent when assessing the outlook for the six coming months.