Instead of improving, business sentiment in Germany deteriorated in January

Despite the more favorable current environment, the business sentiment index in Germany dropped in January due to a deterioration in the outlook rather than expected improvement – according to a study released on Monday by the Ifo Economic Research Institute of the University of Munich.

Ifo’s German business sentiment index fell to 95.9 points in January from the 96.3 points in December, while 97.0 points were expected. The sentiment index was 99.6 points a year ago in January 2019, reaching 100.0 points in February and has been steadily declining ever since.

The decline in the index is mainly due to the deterioration of the outlook, as the current business environment was considered more favorable by the surveyed economic operators. (MTI)