Germany Business Confidence January 2017


Germany: Business confidence slips in January

January 25, 2017

German business confidence fell to 109.8 in January, down from December’s multi-year high of 111.0. The result undershot market expectations of a moderate increase in business sentiment to 111.2. January’s reading was the lowest since September 2016.

According to the Institute, the fall mainly reflects the fact that companies became less optimistic about the six months ahead, which outweighed improved sentiment about current business conditions. The downturn was broad-based, with business sentiment deteriorating in the manufacturing, construction, retailing, wholesaling and trade and industry sectors.

FocusEconomics Consensus Forecast panelists expect gross fixed investment to expand 1.9% in 2017, which is unchanged from last month’s forecast. In 2018, the panel sees investment growth reaching 2.9%.

Author:, Economist

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Germany Business Confidence Chart

Germany Business Confidence January 2017

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

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