"Sentiment across major German businesses held steady at 87.6 points, according to the January edition of the monthly Ifo index. Some analysts had predicted a slight rebound in the Munich-based foundation's survey of around 9,000 business leaders but the overall figure was ultimately unchanged. "Assessments of the current situation edged up somewhat, while expectations were revised slightly downward," Ifo Institute President Clemens Fuest said."
"Ifo's Fuest reported that the index increased "sharply" in the particularly hard-hit manufacturing sector. "Companies assessed current business conditions as more positive. Their expectations were also notably less pessimistic," he said. "However, capacity utilization fell from 78.1 to 77.5%, remaining below the long-term average of 83.2%." To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Meanwhile, the institute found a deteriorating climate in the services sector, both in terms of the curent situation and the perceived outlook."
The monthly Ifo index stood at 87.6 points in January and remained unchanged. Assessments of current business conditions edged up slightly while expectations were revised marginally downward, producing little economic momentum. Manufacturing sentiment rose sharply, with companies reporting more positive conditions and less pessimistic expectations, though capacity utilization fell to 77.5%, below the long-term average. The services sector climate deteriorated, including tourism. Trade and construction indices increased; retail and wholesale rebounded but remain below long-term averages. Provisional GDP growth was 0.2% in 2025, and economists forecast about 1% growth for 2026 with slow growth expected into Q1 2026.
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