German Ifo: Business Sentiment at Nearly Year Low

German business sentiment deteriorated sharply at the start of the year, with manufacturers and construction firms turning more pessimistic on the outlook for their businesses, the Ifo Institute in Munich said Monday.

“The year started with an unpleasant surprise for the German economy,” said Hans-Werner Sinn, the Ifo Institute’s president.

The Ifo’s business climate index fell to 107.3 in January from a downwardly revised 108.6 in December last year, its lowest level since February 2015. Economists polled by The Wall Street Journal had forecast a much smaller decline to 108.5.

The mood among German manufacturing companies hit a 12-month low, the Ifo Institute said.

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Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam