According to the German economic research institute Ifo, its business sentiment index rose to 90.2 in January, up from 88.6 in December. This increase in sentiment was driven by China’s economic opening and the relief of concerns about inflation following the slowdown in energy prices.
The Ifo survey is based on a survey of companies in various sectors, including manufacturing, construction, wholesale, retail, and services. Approximately 9,000 companies are surveyed each month. The survey provides a snapshot of how German businesses view current economic conditions and their expectations for the future, and is closely watched by investors and policymakers. The rise in the Ifo business sentiment index in January suggests that German businesses are becoming more optimistic about the economic outlook.