ifo Business Climate Index Eastern Germany Falls Further (July 2023)
Sentiment among companies in eastern Germany fell once again in July. The Business Climate Index for the entire regional economy dropped from 93.4 to 91.4 points. This means that the barometer of business sentiment fell for the third time in a row. Survey participants were noticeably less satisfied with their current business and slightly scaled back their business expectations for the coming six months.
In eastern German manufacturing, the business climate cooled significantly in July. The manufacturing companies surveyed were markedly less satisfied with their business situation than in the previous month. And the outlook for the coming six months was worse again as well.
In eastern Germany’s service sector, the Business Climate Index slipped a little in July. Participating service providers’ assessments of the business situation and business expectations declined in equal measure.
In eastern German trade, the barometer of business sentiment fell discernibly in June. The businesses surveyed were even less satisfied with their current business than in the previous month. Their expectations for the coming six months were more pessimistic as well.
In eastern German construction, the business climate was somewhat cooler in July. The construction companies surveyed lowered their assessments of the current situation appreciably, while their business expectations improved slightly.
Joachim Ragnitz and Marcel Thum
Executive Directors, Dresden Branch of the ifo Institute
