1st LD Writethru: Ifo Business Climate Index in Jan. rises for third consecutive month

The Ifo Business Climate Index for industry and trade in Germany rose for the third consecutive month from 105.5 points in December to 106.7 points in January, the Ifo institute reported on Monday.

"Companies were far more satisfied with their current business situation and the majority was also optimistic about the business outlook," Ifo president Hans-Werner Sinn said.

The indexes of business expectations in manufacturing and in wholesaling industries continued to improve, while the index in retailing turned positive for the first time since July 2014, according to the Munich-based think tank.

"Stronger impulses are expected from exports thanks to the falling euro exchange rate. Assessments of the current business situation were better, and manufacturers also expressed greater confidence in short-term business developments," the report said.

However, the business climate in construction deteriorated slightly. But the six-month business outlook brightened marginally.

"The German economy makes a good start to the year," Sinn continued.

The Ifo Business Climate Index, considered the most important barometer for the German economy, is based on about 7,000 monthly survey responses from firms in manufacturing, construction, wholesaling and retailing. Endit