Following the release of the German IFO Business Survey, the institute’s Economist Klaus Wohlrabe said that “the German economy is starting the year with cautious optimism.”
Probably won't be a recession, but GDP will probably shrink slightly in Q1 – mainly due to consumption.
48.4% of companies complained in Jan about supply bottlenecks vs 50.7% in Dec.
Inflationary pressure is easing; balance of companies wanting to raise prices falls to 35.4 points (December 40.1).
Companies' export expectations have brightened somewhat, cautious optimism is spreading.
- EUR/USD: 1.0850 emerging as a short-term floor – ING