ifo Business Climate Eastern Germany Takes a Considerable Downturn (July 2022)
Sentiment among companies in eastern Germany cooled significantly in July. The ifo Business Climate Index for the entire regional economy fell to 92.1 points, down from 94.1 points in June. The survey participants’ assessments of their current situation declined slightly, and their outlook became noticeably more negative.
In eastern Germany’s manufacturing sector, the ifo Business Climate Index slid steeply in July. The companies surveyed revised their assessments of the current business situation considerably downward, while business expectations for the coming six months plummeted.
The mood in eastern Germany’s service sector cooled somewhat in July, while assessments of the current situation fell slightly. Companies here revised their business expectations noticeably downward from those of the previous month.
In eastern German trade, the barometer of business sentiment fell slightly in July. The companies surveyed assessed their current business as better than in the previous month, although their outlook for the coming six months worsened markedly.
In eastern German construction, the business climate turned much cooler in July. Assessments of the current situation by the participating construction companies took a nosedive, and business expectations declined significantly.
Joachim Ragnitz and Marcel Thum
Executive Directors, Dresden Branch of the ifo Institute
