Economic Sentiment Worsens in China While Germany Sees Slight Improvement

China's industrial activity shrinks unexpectedly, while Germany's Ifo business climate index shows modest gains despite continued pessimism.

China's official manufacturing Purchasing Managers' Index (PMI) fell to 49.1 in January, signaling contraction for the first time since September 2024.
The decline in China's PMI was sharper than expected, with analysts attributing part of the slowdown to seasonal effects like the Lunar New Year holiday.
Germany's Ifo business climate index rose slightly to 85.1 in January, marking its first increase after two consecutive declines.
In Germany, the current business situation improved, especially in the services sector, but future expectations remain subdued across industries.
Analysts predict limited economic growth for Germany in 2025, with forecasts ranging between 0.2% and 0.4%, following a slight contraction in 2024.