January 25, 2022
BERLIN (Reuters) – German business morale improved in January for the first time in seven months as easing supply bottlenecks helped to lift factory output in Europe’s largest economy, a survey showed on Tuesday.
The Ifo institute said its business climate index rose to 95.7 from an upwardly revised 94.8 in December. A Reuters poll of analysts had pointed to a December reading of 94.7.
“The German economy is starting the new year with a glimmer of hope,” Ifo President Clemens Fuest said.
Fuest added that company executives were considerably more upbeat about their business outlook while their assessment of the current situation was a bit less optimistic.
The Ifo figures chimed with Markit’s purchasing manager index (PMI) from Monday that also showed a relaxation in supply chains which helped to push up activity in the manufacturing sector to a five-month high in January.
(Reporting by Michael Nienaber; Editing by Madeline Chambers)