The inflow of optimistic data continues. After the PMI and the ZEW, it is now the latest Ifo index reading which points to an improving outlook for the German economy. In January, the Ifo index came in at 90.2, from 88.6 in December, and is back at levels last seen in the summer. While the drop in the current assessment component illustrates that the economy is definitely not out of the woods yet, expectations continued to improve. Lower wholesale gas prices and the reopening of the Chinese economy have boosted economic confidence. However, the fact that the German economy seems to have avoided the worst doesn’t ... (full story)