ifo Business Climate Eastern Germany Cools Again Slightly (September 2023)
The ifo Business Climate Index Eastern Germany saw a small decline in September. The barometer of business sentiment for the entire regional economy slipped to 89.6 points, down from 90.4 points in August. The eastern German companies surveyed reported slightly worse business than in the previous month and lowered their expectations somewhat for the months ahead.
Only in eastern German manufacturing did the business climate brighten substantially in September. The manufacturers surveyed reported that their business was much better than in August. They also raised their business expectations a little more.
In eastern Germany’s service sector, the Business Climate Index tumbled in September. The service providers surveyed were noticeably less satisfied with their current business situation and somewhat more pessimistic about business developments in the coming months.
In eastern German trade, the business climate cooled a little overall in September. Compared with the previous month, the wholesale businesses surveyed in eastern Germany hardly changed either their assessments of the current situation or their expectations. Eastern German retailers, meanwhile, assessed their business situation as noticeably worse than in August and lowered their business expectations slightly.
In eastern German construction, the business climate once again turned a lot cooler in September. As in the previous month, the construction companies surveyed were markedly less satisfied with their current business situation and again expected somewhat worse business in the next six months.
Joachim Ragnitz and Marcel Thum
Executive Directors, Dresden Branch of the ifo Institute
