Germany Ifo business climate dropped to 90.1 in January, down from 92.2, below expectation of 92.0. Current assessment index dropped to 89.2, down from 91.3, missed expectation of 90.7. Expectations index dropped to 91.1, down from 93.0, below expectation of 93.2.
Looking at the sectors, manufacturing index dropped from 9.1. to 8.8, first decline after eight straight rises. Services dropped from -0.4 to -4.4. Trade nose-dived sharply from 0.3 to -17.2, steepest fall since April 2020. Construction dropped from -0.8 to -5.1.
Clemens Fuest, President of the ifo Institute: “The second wave of coronavirus has brought the recovery of the German economy to a halt for now.”
