Sentiment among German managers weakened in January. The Ifo Business Climate Index fell to 109.8 points this month from 111.0 points in December. Companies expressed greater satisfaction with their current business situation, but are less optimistic about their six-month business outlook. The German economy made a less confident start to the year.

In the manufacturing sector, the index fell. This was due to markedly less optimistic business expectations. Manufacturers, however, were more satisfied with their current business situation. This pattern can be seen in several key branches of German manufacturing. Capacity utilisation rose by 0.3 percentage points to 86.0 percent and more manufacturers expect price increases.