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 Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.