German business confidence dipped slightly below last month's record high but remains "excellent", a closely-watched survey found Tuesday, as Europe's top economy ends 2017 in a party mood.

The Ifo economic institute's business climate index hit 117.2 points in December, slightly below November's historic 117.5 points.

"German businesses are full of festive spirit," Ifo president Clemens Fuest said in a statement.