FOREX TradingCharts.com

Financial News: German Business Confidence Weakens Unexpectedly

German Business Confidence Weakens Unexpectedly

01/27/2020 - 07:17:00 (RTTNews)

(RTTNews) - German business sentiment deteriorated unexpectedly at the start of the year, reflecting companies' more pessimistic outlook for months ahead.

The business climate index dropped to 95.9 in January from 96.3 a month ago, survey data from the ifo institute showed Monday. The reading was expected to rise to 97.0.

The German economy is starting the year in a cautious mood, ifo President Clemens Fuest said.

Today's Ifo index is a painful warning against premature optimism, Carsten Brzeski, an ING economist said.

The German economy is in a phase of bottoming out, which could come just in time to avoid more negative spillover effects from the manufacturing weakness to the labor market, Brzeski added.

Andrew Kenningham, an economist at Capital Economics, said it is clear that the German manufacturing recession is easing, but has not yet ended, and that overall economic conditions remain weak.

The International Monetary Fund last week downgraded Germany's growth projection for 2020, citing sluggishness in manufacturing. The lender forecast the economy to grow 1.1 percent this year and 1.4 percent in 2021.

According to the ifo, the assessment of current situation strengthened, but firms' expectations deteriorated in January.

The current conditions index improved to 99.1 from 98.7 in the previous month and was slightly above the forecast of 99.0.

Meanwhile, the expectations indicator fell to 92.9 from 93.9 in December, while it was expected to rise to 94.5.

In the manufacturing sector, the business climate advanced markedly. Current assessment improved the most since February 2017 and companies were less pessimistic regarding the coming months.

In the service sector, the indicator declined considerably in January, due to restrained expectations. The business climate in trade climbed in January on improving current situation and expectations.

In construction, the business climate fell back as firms' assessments of the current conditions slid to the lowest since June 2018 and they were more skeptical about coming months.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2020 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


UK Manufacturing Growth Fastest In 10 Months (13 min(s), 01 sec(s) ago)
(RTTNews) - UK manufacturing grew at the fastest pace in 10 months in February, while the services ...Full Story»

U.S. Existing Home Sales Pull Back Less Than Expected In January (04 min(s), 01 sec(s) ago)
(RTTNews) - Existing home sales in the U.S. pulled back in January after jumping in December, acco ...Full Story»

Eurozone Private Sector Growth At 6-month High (59 min(s), 01 sec(s) ago)
(RTTNews) - Euro area private sector grew for a third straight month and at the fastest pace in si ...Full Story»

Ireland Wholesale Prices Fall In January (01 hr(s), 17 min(s), 59 sec(s) ago)
(RTTNews) - Ireland wholesale prices declined to the lowest in five months in January, data from t ...Full Story»

Latvia Producer Prices Fall For Fourth Month (01 hr(s), 24 min(s), 59 sec(s) ago)
(RTTNews) - Latvia's producer prices fell for the fourth month in a row in January, figures fr ...Full Story»

Poland Retail Sales Growth Slows In January (01 hr(s), 31 min(s), 59 sec(s) ago)
(RTTNews) - Poland's retail sales growth slowed in January, figures from Statistics Poland sho ...Full Story»

Italy Inflation Steady In January (01 hr(s), 39 min(s), 59 sec(s) ago)
(RTTNews) - Italy's consumer price inflation remained stable in January, data from the statist ...Full Story»

Japan Private Sector Shrinks Most In Nearly 5 Years (02 hr(s), 31 min(s), 59 sec(s) ago)
(RTTNews) - Japan's private sector declined in February at the strongest pace since April 2014 ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

UK Manufacturing Growth Fastest In 10 Months

02/21/2020 - 12:00 PM (RTTNews)
(RTTNews) - UK manufacturing grew at the fastest pace in 10 months in February, while the services ...Full Story>>

U.S. Existing Home Sales Pull Back Less Than Expected In January

02/21/2020 - 10:51 AM (RTTNews)
(RTTNews) - Existing home sales in the U.S. pulled back in January after jumping in December, acco ...Full Story>>

Eurozone Private Sector Growth At 6-month High

02/21/2020 - 09:46 AM (RTTNews)
(RTTNews) - Euro area private sector grew for a third straight month and at the fastest pace in si ...Full Story>>

Ireland Wholesale Prices Fall In January

02/21/2020 - 06:29 AM (RTTNews)
(RTTNews) - Ireland wholesale prices declined to the lowest in five months in January, data from t ...Full Story>>

Latvia Producer Prices Fall For Fourth Month

02/21/2020 - 06:22 AM (RTTNews)
(RTTNews) - Latvia's producer prices fell for the fourth month in a row in January, figures fr ...Full Story>>
Copyright © 2020. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.