Germany Business Confidence January 2018


Germany: Business confidence edges up, matching November's all-time high

January 25, 2018

German business confidence increased from 117.2 points in December to 117.6 points in January, overshooting market expectations. The indicator remained firmly entrenched above the crucial 100-point mark, and matched November’s all-time high.

The upturn in sentiment was due to an improved assessment of current business situations, with the sub-indicator hitting a record high. Business expectations for the next six months, however, dropped slightly from the previous month but remained at an elevated level. Sentiment in both the manufacturing and wholesaling sectors continued to improve, and was strong going into the new year. Conversely, sentiment in the retailing and construction sectors inched downwards, and contractors were notably less optimistic about business expectations in the next six months.

Germany Investment Forecast

FocusEconomics Consensus Forecast panelists expect gross fixed investment to expand 3.8% in 2018, which is up 0.2 percentage points from last month’s forecast. In 2019, the panel sees investment growth moderating to 3.2%.

Author:, Economist

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Germany Business Confidence Chart

Germany Business Confidence January 2018

Note: Ifo Business Climate Index, 2000=100.
Source: Ifo Business Survey.

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