Strong improvement in ifo Business Climate Eastern Germany

The ifo Business Climate Eastern Germany showed strong improvement in March. The ifo Business Climate Index for the economy in eastern Germany rose from 100.4 to 102.5 points. Both the assessments of the current situation and the business expectations of the survey participants improved noticeably. The downward trend in the business confidence indicator for eastern Germany has thus been interrupted.

In eastern German manufacturing, the business climate, continuing the trend of recent months, cooled slightly once again. The business expectations of the survey participants were somewhat more pessimistic, and the assessments of the current situation weakened slightly.

In the services in eastern Germany, the business climate brightened noticeably. After the sentiment indicator had fallen steadily in recent months, both survey components improved in March. Survey participants view the business outlook much more positively, and there was a marked improvement in their assessments of the current situation.

Sentiment also improved in eastern German trade. Survey participants were noticeably more satisfied with current business, and their business expectations also improved.

In eastern German construction, the business climate index rose strongly. After confidence had weakened considerably in recent months, it strengthened again in March. Contractors’ assessments of the current situation improved considerably, while business expectations weakened somewhat.