German Ifo Institute released its business confidence figures for Germany on Monday. German business confidence index declines to 107.3 in January from 108.6 in December. December's figure was revised down from 108.7.

Analysts had expected the index to fall to 108.4.

"The year started with an unpleasant surprise for the German economy," Ifo President Hans-Werner Sinn said.

The Ifo current conditions index decreased to 112.5 from 112.8. Analysts had expected the index to remain unchanged at 112.8.

The Ifo expectations index dropped to 102.4 from 104.6, missing expectations for a decrease to 104.1. December's figure was revised down from 104.7.