Ifo index plummets - gloomy mood in the economy

The mood in the East German economy deteriorated considerably in April. According to the Ifo Institute in Dresden, the business climate index fell from 88.9 points in March to 86.2 points in April. Companies assessed their current business situation as worse than in the previous month and also lowered their expectations for the coming months.

All economic sectors affected

The downward trend is evident in all economic sectors - from industry to trade and the service sector to construction. Assessments of the situation in industrial companies deteriorated the least, while the deterioration was more pronounced in the other three sectors.

Indicator for the economy

The Ifo Business Climate Index for Eastern Germany is based on around 1,700 monthly reports from companies in industry, the service sector, trade and construction. It is considered an important leading indicator for economic development.