According to the report from the Ifo Institute, the business climate of German companies unexpectedly increased in January, which was facilitated by an improvement in the supply situation and an increase in industrial production.
The data showed that in January the business climate index rose to 95.7 points compared with 94.8 points in December (revised from 94.7 points). Economists had expected the index to decline to 94.7 points. The IFO said that the index growth was recorded for the first time in 7 months.
Meanwhile, the current conditions index fell to 96.1 points from 96.9 points in December. The index was expected to be 96.3 points. The expectations index jumped to 95.2 points from 92.7 points in December (revised from 92.6 points), which was significantly higher than forecasts (93.0 points).
Commenting on the latest data, Ifo President Clemens Fuest said that the economy started 2022 on a positive note. He added that the company's executives were very optimistic about their prospects, but their assessment of the current situation has deteriorated slightly.