The mood in the East German economy hardly changed at the turn of the year. According to the Dresden-based Ifo Institute, the companies surveyed assessed both their current business situation and their expectations for the coming months as only slightly better than in the previous month. The business climate index for eastern Germany rose slightly from 90.0 to 90.1 points in December.
Sentiment not the same everywhere
Sentiment developed differently in the individual sectors. In industry, the business climate cooled significantly. Companies assessed their current situation as considerably worse than in November and were also somewhat more pessimistic about the coming months.
Service providers somewhat more satisfied
In the service sector, however, the business climate brightened slightly. The companies surveyed expressed noticeably more satisfaction with their current business situation, but lowered their expectations slightly.
The mood in the retail sector also improved slightly. While wholesalers assessed their current situation slightly worse and revised their expectations slightly downwards, retailers were more optimistic about current business and raised their expectations noticeably.
Construction industry also more confident
The business climate index also rose slightly in the construction industry. Companies assessed the current situation as slightly worse than in the previous month, but at the same time were slightly more confident about the coming months.
The Ifo Business Climate for Eastern Germany is based on around 1,700 monthly reports from companies in industry, the service sector, trade and construction and is considered an important early indicator of economic development
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