German IFO Business Climate unexpectedly improves to 95.7 in January

• German IFO Business Climate Index came in at 95.7 in January.
• IFO Current Economic Assessment fell to 96.1 this month.
• January German IFO Expectations Index arrived at 95.2, a big beat.

The headline German IFO Business Climate Index unexpectedly jumped to 95.7 in January versus last month's 94.7 and the consensus estimates of 94.7.

Meanwhile, the Current Economic Assessment dropped to 96.1 points in the reported month as compared to last month's 96.9 and 96.1 anticipated.

The IFO Expectations Index – indicating firms’ projections for the next six months, rose to 95.2 in January from the previous month’s 92.6 reading and much better than the market expectations of 93.0.

Market reaction

EUR/USD is little changed on the mixed German IFO survey.

At the time of writing, the pair is down 0.24% on the day, trading at 1.1297.

About German IFO

The headline IFO business climate index was rebased and recalibrated in April after the IFO research Institute changed series from the base year of 2000 to the base year of 2005 as of May 2011 and then changed series to include services as of April 2018. The survey now includes 9,000 monthly survey responses from firms in the manufacturing, service sector, trade and construction.