ifo Business Climate Eastern Germany: Index Falls Again (June 2023)
Sentiment among companies in eastern Germany saw a decidedly strong decrease in June. The ifo Business Climate Index for the entire regional economy fell to 93.3 points, down from 96.0 points in May. While the companies surveyed lowered their assessments of the current situation slightly, their outlook for the next six months worsened drastically.
In eastern German manufacturing, the business climate cooled down significantly in June. The manufacturing companies surveyed assessed the business situation as somewhat less positive than in the previous month. At the same time, their outlook for the coming six months was dramatically worse.
Sentiment in eastern Germany’s service sector worsened slightly in June. Service providers’ assessments of the current situation declined a little. Their business expectations worsened marginally.
In eastern German trade, the barometer of business sentiment fell moderately in June. Compared to the previous month, the businesses surveyed gave marginally improved assessments of their current business. But at the same time, their outlook for the coming six months was slightly more negative.
In eastern German construction, the business climate was a touch cooler in June. The companies surveyed raised their overall assessments of the current situation somewhat, while their expectations darkened noticeably.
Joachim Ragnitz and Marcel Thum
Executive Directors, Dresden Branch of the ifo Institute
