Industry and trade in the East much more optimistic

The mood in the eastern German economy brightened slightly in October compared to the previous month. The barometer for this, the ifo Institute's regional business climate index, rose from 88.4 points to 89.3 points. The approximately 1,700 companies surveyed assessed both their current business situation and their expectations as slightly better than in September.

The business climate improved significantly in the manufacturing sector. Industrial companies also assessed their business situation slightly better - and revised their expectations for the coming months considerably upwards.

In contrast, the business climate in the eastern German service sector cooled slightly in October. Although the companies surveyed were somewhat more satisfied with their business situation, they lowered their expectations slightly. The business climate also improved noticeably in the eastern German retail sector. In addition, companies in both the retail and wholesale sectors raised their business expectations considerably.

In the construction industry, the business climate index rose significantly. Companies rated current business considerably better than in September, but are also somewhat more pessimistic about the coming months.