ifo Business Climate Eastern Germany Dips Slightly (August 2022)
The mood of eastern German companies cooled off a bit in August. The ifo Business Climate Index for the entire regional economy fell to 90.8 points, down from 92.2 points in July. The survey participants’ assessments of their current situation declined considerably, and their outlook became somewhat more negative.
In eastern German manufacturing, the ifo Business Climate Index saw a strong decline in August. The companies surveyed revised their assessments of the current business situation perceptibly downward, while business expectations for the coming six months darkened noticeably.
The mood in eastern Germany’s service sector cooled considerably in August, and their assessments of the current situation declined somewhat. Companies here revised their business expectations slightly downward from those of the previous month.
In eastern German trade, the barometer of business sentiment saw an unmistakable drop in August. The companies surveyed assessed their current business as palpably worse than in the previous month, but their outlook for the coming six months remained the same.
In eastern German construction, the business climate turned a little brighter in August. The construction companies surveyed revised their assessments of the situation slightly downward, while their business expectations rose significantly.
Joachim Ragnitz and Marcel Thum
Executive Directors, Dresden Branch of the ifo Institute
