After eight months of stagnation, the Ifo Institute in Dresden has reported an initial improvement in the business climate in eastern Germany. According to the institute, the sentiment barometer for the regional economy rose to 87.7 points in February after 85.6 in the previous month.
The eastern German companies surveyed assessed their business expectations for the next six months as noticeably better than in January. There was a slight increase in the business situation.
The most significant improvement was seen among industrial companies. They were considerably more optimistic about their business expectations, meaning that the business climate improved significantly - despite a noticeable decline in the current business situation.
The mood in the service sector also brightened considerably. The companies concerned raised their assessment of their current business considerably and at the same time assessed their business expectations somewhat more optimistically.
According to Ifo, the business climate in retail warmed up somewhat overall despite a slight slowdown in the retail sector. The very positive outlook for the coming months in the wholesale sector was the main factor here.
Only in the construction sector did the business climate deteriorate slightly. Both their current business situation and expectations for future business performance fell slightly.
The Ifo Business Climate for Eastern Germany is based on around 1,700 monthly reports from companies in various sectors. They are asked to assess their current business situation and share their expectations for the next six months. The Ifo Index is considered a very accurate early indicator for the further course of the economy.
Copyright 2025, dpa (www.dpa.de). All rights reserved
