The mood in the East German economy continues to deteriorate slightly. The business climate index for eastern Germany fell from 88.6 to 88.2 points between August and September, according to the ifo Institute in Dresden. The companies surveyed assessed the current situation as significantly worse than in the previous month, but raised their business expectations slightly.
Services sector and construction industry slightly improved
According to the institute, there was a slight improvement in the economic climate in the services sector in September. The companies surveyed raised their assessment of their current business slightly and expect a somewhat more positive business trend in the coming months.
The business climate in the main construction sector in eastern Germany also improved slightly in September. The construction companies surveyed stated that their business situation was slightly worse than in August. At the same time, they raised their expectations for future business development noticeably.
Mood in manufacturing and trade still poor
The mood in the eastern German manufacturing industry fell slightly. The industrial companies surveyed rated their current business situation considerably worse than in August. However, the companies expressed slight confidence with regard to their business expectations.
The business climate in the retail sector also fell slightly. Retail companies reported a slightly better business situation, while wholesalers in eastern Germany assessed their business situation as noticeably worse than in the previous month. Wholesale companies were noticeably more confident about the future course of business, while retail companies slightly lowered their outlook for the coming months.
The Ifo Business Climate East Germany is based on around 1,700 reports from companies. Every month, companies are asked about their current business situation and expectations for the next six months.
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