Business confidence in Germany improved in January to its highest level since June, adding to signs of resilient activity at the beginning of the year as optimism returns amid easing concerns over an imminent recession.
January data showed business confidence continues to recover from September’s low. However, sentiment remains subdued compared to the situation prior to the Ukraine war, when the index stood at 98.8. The recent fall in natural-gas prices, the implementation of the government’s energy price cap for firms and China’s swift reopening are likely to have lifted moods over the short-term outlook.
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