ifo Business Climate Eastern Germany Cools Slightly
The ifo Business Climate Index Eastern Germany saw a small decline in August. The barometer of business sentiment for the entire regional economy slipped to 90.4 points, down from 91.5 points in July. The eastern German companies surveyed were noticeably less satisfied with their current business situation, but did not change their business expectations for the coming months.
In eastern German manufacturing, the business climate cooled noticeably in August. The companies surveyed assessed their business situation as considerably worse than in July. With regard to business expectations, they expressed somewhat less pessimism than in the previous month.
In eastern Germany’s service sector, too, the Business Climate Index dipped noticeably in August. The service providers surveyed reported significantly worse business than in the previous month and also lowered their business expectations slightly.
In eastern German trade, the Business Climate Index remained largely in line with the previous month. The companies surveyed assessed their business situation as only slightly worse than in July. While eastern German wholesalers also expected business to deteriorate slightly in the coming months, the retail companies surveyed raised their expectations a bit.
In eastern German construction, the business climate turned much cooler in August. The construction companies surveyed were markedly less satisfied with their current business situation than in the previous month and also expected somewhat worse business in the coming six months.
Joachim Ragnitz and Marcel Thum
Executive Directors, Dresden Branch of the ifo Institute
