Sentiment in the East German economy falls slightly

According to the Ifo Institute in Dresden, the mood in the East German economy fell slightly overall in June. The companies surveyed assessed their business situation as slightly worse than in the previous month and lowered their business expectations slightly compared to May, according to the institute.

Significant deterioration in sentiment in industry

The business climate in industry deteriorated significantly in June, it said. The business situation was assessed as significantly worse than in the previous month, but future expectations were noticeably better. In the service sector, the business climate had warmed slightly, while in the construction industry it had deteriorated slightly.

Differentiated picture in trade

The picture in trade is differentiated. While companies in the wholesale sector assessed their current situation as significantly better than in May and slightly raised their expectations for future business development, companies in the retail sector reported slightly worse business and also lowered their expectations.

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

Existence of the Dresden Ifo Institute secured

There was good news for the Ifo Institute in Dresden itself in the previous week. The double budget approved for Saxony has also secured the institute's continued existence. Ifo's Dresden site was originally facing closure due to the Free State's plans to make cuts.