Ifo Business Survey in January 2011

The Ifo Business Climate Index for German industry and trade rose further in January. The business climate has thus continued the positive development of the past year. The firms are just as satisfied with their current business as they were in December, and they have given more favourable assessments of their business prospects for the coming half year. The German economy has started the year with great vigour. The Ifo Employment Barometer for German industry and trade rose further at the beginning of 2011, continuing the upward trajectory of last year. The labour market outlook is very good. The rise in the employment barometer in January is attributable to the personnel plans of businesses in manufacturing. The industrial firms have now achieved an above-average capacity utilisation of their machines and equipment and are optimistic regarding the business outlook for the coming half year. An increasing number is thus also planning to seek additional personnel.