FXStreet (Mumbai) - The German Ifo Business Climate Index will be released today at 9 GMT. The index likely dropped to 108.5 In January from 108.7 recorded in December. The index for current assessment in January is expected to have remained unchanged from December at 112.8. The index for expectation is also likely to have dipped from 104.7 seen previously to 10.4. The index had seen a drop last month as well. It had fallen from 109 seen in November to 108.7, staying below broad market expectations. Companies were noted to have assessed their current business situation less favourably. The index for the current assessment fell to 112.8 in December from 113.4 in January. Expectations over future developments had stayed unchanged in December. Business Confidence in Germany averaged 101.68 from 1991 until 2015. It reached an all-time high of 115.40 in February 2011 and a record low of 84.60 in 2008 December. The December figures for the Ifo Business Climate indicator for the German service sector had however remained very upbeat. The index hit another record high of 33.7 balance points in December, up from 33.6 balance points in November. Service providers were more satisfied with their current business situation compared to those in sectors such as manufacturing and construction. Service providers’ interest in hiring rose to its highest level in over a year. Ifo Business Climate Index compiled by the Ifo Institute for Economic Research assesses and then rates the current German business climate. It also measures expectations for the next six months. A survey of manufacturers, builders, wholesalers and retailers is conducted to arrive at the index figures. The Ifo Business Climate Index is a closely followed indicator for economic activity in Germany. Given that Germany is the largest economy in the euro zone, its business climate largely impacts the sentiment in the whole bloc. As a result the Ifo Business Climate Index assumes great importance. The Business Climate Survey is based on approximately 7,000 monthly survey responses from firms in manufacturing, construction, wholesale and retail. For more information, read our latest forex news.