German business morale falls as political impasse clouds outlook

Berlin

GERMAN business morale deteriorated unexpectedly in December after hitting an all-time high in the previous month, a survey showed on Tuesday, suggesting that political deadlock in Europe's economic powerhouse is clouding the outlook.

Chancellor Angela Merkel is struggling to form a stable government after her conservatives lost voters to the far right in September's election and her attempt at a tricky three-way alliance with two smaller parties failed last month.