East German economy more optimistic about the future

The East German economy is more optimistic about the future. The business climate brightened in July compared to the previous month, according to the Ifo Institute in Dresden. The current situation was assessed slightly worse by the companies surveyed. However, expectations for future business had improved.

Better mood in industry and construction

The business climate improved significantly in industry in particular, according to the researchers. The current business situation was assessed as considerably better and business expectations had also risen.

The business climate also brightened in the construction industry. Expectations for the future rose significantly. However, companies' assessments of their business in July were slightly worse than in June.

Retail and service providers with poorer business

In contrast, there was a significant slowdown in the retail sector, according to the report. Business in July was rated significantly worse and the outlook was also rather negative. In wholesale, on the other hand, the current situation and expectations were assessed slightly more positively.

According to the institute, the mood in the service sector also deteriorated somewhat - current business was assessed as slightly worse. However, the outlook for the coming months was slightly more positive.

The Ifo Business Climate East Germany is based on around 1,700 monthly reports from companies in the manufacturing, service, trade and construction sectors. The companies are asked to assess their current business situation and share their expectations for the next six months