Ifo Institute: Business climate in the East declines in November

Slightly better mood in retail

In eastern German retail, the business climate brightened somewhat in November. While the retail sector reported significantly better business, this was only slightly the case for wholesalers.

Significant decline in the service and construction sectors

In contrast, the business climate index fell significantly in the eastern German service sector. This also applies to the main construction industry in eastern Germany. The construction companies surveyed stated that their business situation was slightly worse than in October. At the same time, they significantly lowered their expectations for future business development.

There was a slight deterioration in the manufacturing sector. The industrial companies surveyed assessed their current business situation as slightly worse than in the previous month. Business expectations were also slightly less favorable.

The Ifo Business Climate East Germany is based on around 1,700 reports from companies. Every month, the survey asks about the current business situation and expectations for the next six months.