BERLIN, Jan. 25 (Xinhua) -- Sentiment among German companies has "brightened at the beginning of the year" as the ifo Business Climate Index rose from 94.8 points in the previous month to 95.7 points in January, the ifo Institute for Economic Research said on Tuesday.
"The German economy is starting the new year with a glimmer of hope," said the institute's President, Clemens Fuest. "While companies' assessments of the current situation were less positive, their expectations improved considerably," the institute said in a statement.
In the manufacturing sector, the index has moved sharply upward. Companies are more optimistic about the coming months as the "situation regarding supply bottlenecks in intermediate products and raw materials eased a little."
In the service sector, the Business Climate Index rose again after falling for three consecutive months. The tourism industry is "looking forward to a promising summer," the institute noted. On the other hand, the country's hospitality sector remains stuck in crisis.
The business climate has also improved in Germany's trade sector. In retail in particular, "pessimism about the future was markedly reduced."
Companies in the German construction industry are somewhat more satisfied with their current business, with the expectations indicator also rising as material shortages have eased further, the ifo Institute said. ■