ifo Business Climate Index Rises (Januar 2023)
Sentiment in the German economy has brightened. The ifo Business Climate Index rose to 90.2 points in January, up from 88.6 points in December. This is due to considerably less pessimistic expectations. Companies were, however, somewhat less satisfied with their current situation. The German economy is starting the new year with more confidence.
In manufacturing, the index continued along its upward trajectory. Companies assessed their current situation as better. Their expectations for the coming six months were also noticeably brighter. Order volumes are declining but remain at a high level. Production is set to increase in the months ahead.
In the service sector, the business climate improved. Service providers were less pessimistic regarding the months ahead. However, their current business is developing less well. This applies in particular to transport and logistics and to hospitality.
In trade, the index increased notably. Expectations improved particularly strongly. Businesses continued to assess their current situation as mildly positive.
In construction, the business climate improved marginally. Businesses were slightly less pessimistic about the coming months. They were a little less satisfied with their current situation.
Clemens Fuest
President of the ifo Institute
Survey
ifo Business Climate Index Rises (January 2023)
Sentiment in the German economy has brightened. The ifo Business Climate Index rose to 90.2 points in January, up from 88.6 points in December. This is due to considerably less pessimistic expectations. Companies were, however, somewhat less satisfied with their current situation. The German economy is starting the new year with more confidence.
