Ifo Business Survey for January 2016 in Brief: The New Year Starts With an Unpleasant Surprise for the German Economy

Sentiment among German businesses weakened at the beginning of the New Year. The Ifo Business Climate Index for German industry and trade fell to just 107.3 points in January from 108.6 points (This figure was revised due to the seasonal adjustment) in December. Assessments of the current business situation were scaled back slightly, but remained very good. Business expectations, by contrast, clouded over significantly. The year started with an unpleasant surprise for the German economy. Wholesaling was the only sector in which the business climate index rose. It dropped in all other sectors, and markedly in some cases.