German IFO Business Climate Index rises to 90.2 in January vs. 90.2 expected

• German IFO Business Climate Index came in at 90.2 in January.
• IFO Current Economic Assessment for Germany dropped to 94.1 this month.
• January German IFO Expectations Index improved to 86.4.

The headline German IFO Business Climate Index advanced to 90.2 in January versus the previous reading of 88.6 and the forecast of 90.2.

Meanwhile, the Current Economic Assessment dropped to 94.1 points in the reported month as against December’s 94.4 and 95.0 expected.

The IFO Expectations Index – indicating firms’ projections for the next six months, rose to 86.4 in January from the previous month’s 83.2 and against the estimates of 85.0.

Market reaction

EUR/USD is unimpressed by the mixed upbeat German IFO survey. At the time of writing, the pair is trading at 1.0875, down 0.06% on the day.

About German IFO

The headline IFO business climate index was rebased and recalibrated in April after the IFO Research Institute changed the series from the base year of 2000 to the base year of 2005 as of May 2011 and then changed the series to include services as of April 2018. The survey now includes 9,000 monthly survey responses from firms in the manufacturing, service sector, trade and construction.