The mood in the East German economy improved significantly in May. The Ifo Institute's business climate index for the East rose by 2.6 points to 89.2 points, according to the Institute's Dresden branch. "The significant increase in the business expectations of eastern German companies is surprising in its extent," said Joachim Ragnitz, deputy head of the Ifo branch in Dresden. Although expectations had also improved throughout Germany, "they were nowhere near as strong as in the eastern German states".
The companies surveyed in the east assessed both their current situation and their expectations for the coming months more positively than in April. This applies above all to the manufacturing industry. The climate also brightened noticeably in the service sector - companies are considerably more optimistic about the coming months than recently, while the current business situation improved slightly.
