BERLIN, Jan. 27 (Xinhua) -- Although analysts had expected the ifo business climate index to rise, the mood among German executives was "somewhat diminished" at the start of the year, the German ifo Institute announced on Monday.
Due to the "more pessimistic" expectations of companies, the ifo business climate index fell by 0.4 points to 95.9 points in January, according to the ifo Institute. In December, the index had hit a six-month high of 96.3 points.
"The German economy is starting the year in a cautious mood," said Clemens Fuest, president of the ifo Institute.
The monthly index is reflecting the economic sentiment of around 9,000 German company executives. For the index, surveyed companies are assessing their current business situation as well as their expectations for the next six months.
Although German companies in the service sector were "more satisfied" with the current situation, bleaker outlooks caused the index to fall "noticeably", according to ifo.
Even for Germany's booming construction industry, the index had declined and companies' assessments of the current situation fell to its lowest level since June 2018. Moreover, skepticism with regard to the coming months continued to increase.
In the manufacturing sector on the other hand, the business climate "improved markedly". The ifo Institute noted that companies' assessment of the current situation in particular had increased significantly. The business climate for Germany's trade sector also increased. Both the indicator for the current business situation and expectations were higher than in the previous month, which was only due to the positive development of wholesale trade.
