German business confidence dips in Jan; signalling pessimism: ifo

The manufacturing sector, however, showed a contrasting trend with a slight improvement in the Business Climate Index. Companies in this sector reported a marginal increase in satisfaction with their current business activities and a less negative outlook for the future. Despite this, challenges persist as order books are still shrinking, and capacity utilisation has decreased from 81.9 per cent to 81.0 per cent, falling below its long-term average by around two and a half percentage points, ifo said in a press release.

Conversely, the trade sector experienced a more pronounced decline, with the index reaching its lowest level since October 2022. Trading companies, encompassing both wholesalers and retailers, reported reduced satisfaction with their current business situation and more negative expectations for the future.

ALCHEMPro News Desk (KD)