ifo Business Climate Eastern Germany Falls (December 2023)
The ifo Business Climate Index Eastern Germany fell considerably in December. The barometer of business sentiment for the regional economy in eastern Germany dropped to 88.6 points, down from 90.6 points in the previous month. Among the companies surveyed, both their assessments of the current situation and their business expectations deteriorated substantially.
In eastern German manufacturing, the business climate cooled notably in December. The manufacturers surveyed reported that business was markedly less favorable than in the previous month, and their expectations for business in the months ahead were also far worse than they had been in November.
In the eastern German service sector, the Business Climate Index fell significantly in December. The service providers surveyed lowered both their assessments of the current situation and their business expectations sharply.
In eastern German trade, the Business Climate Index plummeted in December. While the trend in wholesale was drastically worse than in the previous month, sentiment among retailers deteriorated only slightly.
In eastern German construction, the business climate turned much cooler in December. The construction companies surveyed assessed their current business situation as somewhat worse than in November, and they were noticeably more pessimistic about their future business performance.
Joachim Ragnitz and Marcel Thum
Executive Directors, Dresden Branch of the ifo Institute
