Economics

German Business Mood Darkens as Virus Lockdowns Delay Recovery

  • Ifo business climate index declines to 90.1 in Jan.; est. 91.5
  • Gauges of current conditions and expectations deteriorated

Closed bars in the Old Sachsenhausen district in Frankfurt.

Photographer: Alex Kraus/Bloomberg
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German companies’ optimism in an economic recovery is being tested as extended lockdowns at home and abroad curb activity.

A gauge of sentiment over current conditions fell in January, dragging the Ifo Institute’s business climate index down to 90.1. A measure of expectations for the next six months also declined amid uncertainty about the impact of new, more contagious coronavirus strains on the economy.