German business sentiment remains flat in February

Adds context, other indices

BERLIN, Feb 24 (Reuters) - German business morale unexpectedly stagnated in February, a survey showed on Monday, dealing a difficult hand to a future government following a national election in which parties promised to lift Europe's top economy from perpetual downturn.

The Ifo institute said its business climate index remained flat at 85.2 in February after revising the January reading upwards slightly to 85.2.

Analysts polled by Reuters had forecast a rise in the reading to 85.8.

Sunday's election delivered a win to the conservative CDU/CSU opposition of Friedrich Merz, who has promised to cut red tape, encourage investment and bring down energy prices to boost Germany's shrinking economy.

Ifo's current conditions index fell unexpectedly to 85.0 in Feburary from 86.0 in January, while the expectations index rose to 85.4 from 84.3, according to the Munich-based institute's monthly survey of some 9,000 companies.