Sentiment among firms in Germany improves a bit in Jan: ifo Institute

The ifo business climate index rose to 85.1 points this month—up from 84.7 points in December, primarily due to a more positive assessment of the current situation. However, expectations deteriorated again. Companies continue to be pessimistic, a release from the institute said.

In manufacturing, the business climate saw a further decline. Companies were even more skeptical about the coming months. By contrast, the current business situation was assessed as better. Incoming orders continue to decline. Capacity utilisation remained almost unchanged at 76.5 per cent. This is still well below the long-term average of 83.4 per cent.

In trade, the business climate remained unchanged. Traders assessed their current situation as more positive. This was particularly the case in wholesale. However, expectations were slightly more pessimistic. This development was driven by retailers.

ALCHEMPro News Desk (DS)