ifo Business Climate Eastern Germany Treads Water (October 2023)
The ifo Business Climate Index for eastern Germany rose minimally in October. The barometer of business sentiment for the regional economy in eastern Germany improved by 0.1 point to 89.9 points. While the eastern German companies surveyed assessed their current situation as slightly worse, they also raised their business expectations a little.
In eastern German manufacturing, the business climate cooled marginally in October. Although the manufacturers surveyed reported noticeably worse business than in the previous month, they expected somewhat better business in the coming months than in September.
The ifo Business Climate Index rose slightly in the eastern German service sector in October. The service providers surveyed raised both their assessments of the current situation and their business expectations somewhat.
In eastern German trade, the business climate improved noticeably overall in October. Compared with the previous month, the retail businesses surveyed in eastern Germany lifted both their assessments of the current situation and their expectations sharply. By contrast, eastern German wholesalers reported slightly worse business than in September and lowered their business expectations minimally.
In eastern German construction, the Business Climate Index deteriorated marginally in October. Although the construction companies surveyed assessed their current business situation as slightly worse than in September, they were somewhat less pessimistic about their future business performance than in the previous month.
Joachim Ragnitz and Marcel Thum
Executive Directors, Dresden Branch of the ifo Institute
