Sentiment among German businesses was very strong going into the year. The ifo Business Climate Index rose to 117.6 points in January from 117.2 points in December. This was due to far better assessments of the current business situation, with the sub-indicator hitting a record high. Business expectations for the next six months, by contrast, were slightly scaled back, but remain at a high level. The German economy made a dynamic start to the year.

In manufacturing the index rose to a new record high. This also applies to assessments of the current business situation, which were better than ever. Fewer manufacturers, however, expect to see any further short-term improvement in their very good business situation. Capacity utilisation rose by 0.6 percentage points to 87.9 percent, significantly above its long-term average of 83.7 percent.