In Germany, business sentiment improved in December

Business sentiment in Germany improved more than expected in December, according to a study by the Ifo Institute for Economic Research at the University of Munich.

The improvement is another indication that the largest European economy as a whole is responding flexibly to the crisis in the manufacturing industry.

The Munich-based institute announced on Wednesday that its business sentiment index increased to 96.3 points from its 95.1 point in November. Analysts expected a slight improvement of 95.5 points.