Ifo Institute: Sentiment in eastern German economy improves

Industrial companies more optimistic

In industry, the business climate warmed slightly in November, it said. Companies once again assessed their current situation as slightly better than last month and revised their expectations for the coming months slightly upwards. This trend was also observed in the service sector.

Business climate in trade worsened

In contrast, the climate in trade worsened in November. Wholesalers assessed the current business situation as significantly better than in the previous month, while retailers were noticeably more pessimistic about current business than in October, it was reported. At the same time, wholesalers revised their expectations slightly downwards, while retailers did so considerably.

In the construction industry, the business climate index deteriorated slightly in November. Although companies rated current business slightly better than in the previous month, they were also noticeably more pessimistic about the coming months, the Ifo Institute reported.