ifo Business Climate Eastern Germany on an Upward Trajectory (February 2020)
In February 2020, the ifo business climate for eastern Germany brightened again somewhat. The ifo Business Climate Index for the region’s economy as a whole rose from 98.8 to 99.4 points. Among the companies surveyed, both their assessments of the current situation and their business expectations improved. Overall, the eastern German economy seemed to be back in a better mood in February.
In eastern German manufacturing, there was a marked improvement in sentiment in February. The industrial companies surveyed assessed both their outlook and their business situation as better than in the previous month. In other words, eastern German industry seems to be continuing last month’s positive trend.
In the eastern German service sector, the Business Climate Index fell slightly. Service providers’ assessments in both subindices were less positive than in January.
The mood in eastern German trade improved considerably. Survey participants from both wholesale and retail trade revised their assessment of the current situation upward. Business expectations in the two branches of trade also rose in February.
The business climate in eastern German construction brightened noticeably. While the survey participants assessed their current business as somewhat worse than in the previous month, they raised their expectations for the next six months considerably.
Joachim Ragnitz and Marcel Thum
Executive Directors, Dresden Branch of the ifo Institute
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