GERMAN DATA
MNI (London)
GERMANY JAN IFO EXPECTATIONS 86.4 (FCST 85.3); DEC 83.2
- The IFO business climate index was broadly in line with expectations in January, improving by 1.6 points to 90.2. Despite current situation passements edging down (a reminder that the economy continues to face strong headwinds), the expectations index rose 3.2 points, beating expectations yet in line with flagged upside risk following the record jump in ZEW survey expectations.
- Production outlooks improved across production, services, exports and construction, although services noted considerable struggles in transport, logistics and gastronomy at current.
- Lower energy prices and fiscal support and easing bottlenecks remain key in improving sentiment, whilst reopening of China's economy is likely to see exports recover.
- January's survey adds to the narrative of a rebound in eurozone growth outlooks for 2023 as the bloc looks likely to enter, at worse, a more shallow contraction than initially anticipated.
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