East German Economy Looks to the Future with Greater Optimism

Business sentiment in eastern Germany improved slightly in June. According to the Ifo Institute in Dresden, the business climate index rose from 87 points in May to 88 points. According to the report, companies view their current situation significantly more positively than in the previous month and are expressing slightly more optimism about future business prospects.

Retail and Service Sectors Show Significantly Improved Sentiment

Retail companies, in particular, report noticeably better business performance. The service companies surveyed view their current business situation much more positively than in the previous month and assess future business prospects with noticeably greater confidence. In contrast, expectations in the construction sector and industry remain subdued.

Economic Indicator

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