Sentiment in Germany slightly improves

CEE Macro and FI Daily , 28. Jan.
Sentiment in Germany slightly improves

Looking at the latest ifo indicators, sentiment among companies in Germany has improved slightly. The ifo Business Climate Index rose to 85.1 points in January, up from 84.7 points in December, primarily due to a more positive assessment of the current situation. According to the statement, expectations deteriorated again and companies continue to be pessimistic. Zooming in on manufacturing sector, the business climate saw a further decline. Improvement of the sentiment is in line with recent flash estimates of PMI indicators for Germany and Eurozone. PMI index in Germany positively surprised. The composite indicator crossed the important 50-point threshold by a tenth of a point. It has thus entered the expansion zone for the first time in six months.