A slim majority of sectors of the German economy are feeling optimistic as they head into 2014 thanks to a robust domestic economy and signs the eurozone will pick up after emerging from recession this year, a survey showed on Thursday.

Of 48 industry associations polled by the Cologne Institute for Economic Research (IW), 26 said firms in their sector were more upbeat at the end of the year than they were 12 months ago. Seven sectors including the mining, petroleum, water and energy and cooperative bank industries were more downbeat.

Asked about the future, the associations were more positive, with 34 out of 48 branches expecting an increase in production or sales next year compared with 2013.

Manufacturers and builders, both of which had a weak start to 2013, were among the sectors feeling upbeat.

“German business has not looked to the future this positively for a long time,” said Michael Huether, head of IW. “But the result would certainly have been even better were it not for the uncertainty that the deficient coalition treaty brings with it for companies.”

German industry representatives have widely criticised the coalition deal struck between Chancellor Angela Merkel’s conservatives and the centre-left Social Democrats. They say it rows back on economic reforms introduced a decade ago that have been credited with turning the former “Sick Man of Europe” into its powerhouse.

The deal includes a nationwide minimum wage of €8.50 per hour to be phased in by 2017, a chance to retire at the age of 63 for those who have worked for 45 years, and higher pensions for mothers whose children were born before 1992.

In interviews conducted by Reuters the heads of the BDI industry association, the German Chambers of Industry and Commerce (DIHK) and the German Confederation of Skilled Crafts (ZDH) also said the government’s plans were dampening optimism, though they were upbeat overall about the outlook for 2014. (Reuters)