German Business Expectations Slide Ahead of Snap Election
- Ifo expectations index dips to 84.2; economists saw 85
- ‘Companies continue to be pessimistic,’ Ifo’s Fuest says
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German companies unexpectedly became more pessimistic at the start of the year, adding to doubts before a snap election taking place next month that the country can quickly return to growth.
An expectations index by the Ifo institute fell to 84.2 in January from 84.4 the previous month. Economists had predicted a minor uptick. A measure of current conditions improved, thanks in particular to a stronger current performance by services.