Financial News: German Business Confidence Remains Unchanged

German Business Confidence Remains Unchanged

01/26/2026 - 06:12:00 (RTTNews)

(RTTNews) - German business sentiment remained unchanged in January as the improvement in current situation was offset by the deterioration in expectations, survey data from the Munich-based ifo Institute showed on Monday.

The business climate index remained unchanged at 87.6 in January, while the score was expected to rise to 88.3.

The current situation index rose to 85.7 in January from 85.6 in December. Meanwhile, the expectations indicator dropped to 89.5 from 89.7 in the prior month.

The German economy is starting the New Year with little momentum, ifo President Clemens Fuest said.

ING economist Carsten Brzeski said the ifo survey indicates that the uncertainty has hit the German economy again on the back of geopolitical tensions and tariff threats. However, for now, an upcoming recovery is still expected, he added.

The survey showed that business confidence in manufacturing increased sharply in January. Companies assessed current business conditions as more positive and their expectations were notably less pessimistic.

In the service sector, the business climate deteriorated. The current situation was assessed as slightly worse and expectations turned somewhat more pessimistic.

In trade, the index rose sharply. Companies rated their business situation as more favorable, and expectations also became less pessimistic. This improvement was seen in both retail and wholesale trade.

In construction, the business climate improved in January. This was driven by a better assessment of current business conditions. However, the expectations indicator was unchanged.

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