In January, the IFO business climate index increased from 109.5 to 110.6, thus reaching the highest level since July 2011. The survey is consistent with acceleration in the recovery pace at the beginning of the year.
Business climate improved in all sectors, with the exception of retailing. In the construction sector, the business climate rose for the third month in a row up to 2.5, back to the highest level since May 2013. In the manufacturing sector, the business climate index rose markedly up from 15.5 to 17.7, the highest level since July 2011. Finally, the business climate improved markedly in the wholesale trade sector. The index was up from 9.4 to 15.3 and optimism regarding the business outlook rose to a two-year high.
The current situation index was up from 111.6 in December to 112.4, the highest level since June 2012. In addition, the expectation index was also up from 107.4 in December to 108.9 in January, the highest level since February 2011.
The IFO survey confirms the PMI survey, released last week. The PMI composite output index was up from 55 to 55.9 in January, the highest level since June 2011, remaining above the 50-threshold for the ninth month in a row.
BY Caroline NEWHOUSE
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