German business sentiment improves in January - Ifo
By Michele Maatouk
Date: Tuesday 25 Jan 2022
(Sharecast News) - German business sentiment unexpectedly improved in January, according to a survey released on Tuesday by the Ifo Institute.
The business climate index rose to 95.7 from 94.8 in December, coming in comfortably ahead of expectations for a reading of 94.7.
The current situation index printed at 96.1 in January versus 96.9 the month before, while the expectations index increased to 95.2 from 92.7.
The manufacturing gauge rose to 19.9 from 17.4, while the service sector index pushed up to 7.7 from 4.6. The index for trade improved to -1.3 from -4.1 and the construction gauge rose to 8.7 in January from 7.6 in December.
Ifo President Clemens Fuest said: "While companies' assessments of the current situation were somewhat less positive, their expectations improved considerably. The German economy is starting the new year with a glimmer of hope."
Andrew Kenningham, chief Europe economist at Capital Economics, said: "The increase in the Ifo Business Climate Index (BCI) in January provides more evidence that, after contracting in late 2021, conditions have stabilised at the start of the year.
"With disruption from the Omicron wave likely to ease in the coming weeks, we think German GDP will increase in Q1."
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