The IFO business climate index improved slightly to 85.1 points in January. In December it was still 84.7 points. Above all, the evaluation of the current situation has improved (increase from 84.7 to 85.1), the expectations of the future have remained negative (fall from 84.4 to 84.2).
The climate deteriorated in the processing industry. The current business situation was better assessed, the expectations deteriorated. This is mainly due to the stagnating capacity utilization of 76.5%. The long -term average is 83.4%. In the service sector, the mood has improved significantly and both business and expectations have been rated more positively. The outlook improved significantly, especially among IT service providers. The business climate has remained unchanged in the trade. The business situation has been better assessed, which is particularly due to the reports in wholesale. The expectations are particularly negative in retail. The business climate has clouded in the construction industry.
The balance, the offsetting of the positive and negative reports, has increased from -13.9 over the entire economy. In the processing industry it fell from -24.9 to -25.3. In the service sector it rose from -5.6 to -2.2. It stayed in trade at -29.5. In the construction industry it fell from -26.2 to -28.2.
The IFO business climate is based on around 9,000 monthly reports. The companies rate their current situation and expectations for the next six months.
