Ifo Institute: Business climate in the East declines in November

The mood in the eastern German economy fell further in November from an already low level. The business climate index for eastern Germany stood at 86.9 points in November - 1.3 points lower than in the previous month, according to the Ifo Institute in Dresden. At the same time last year, the index stood at 90.8 points. The companies surveyed assessed their business situation as slightly worse than in October, and business expectations were significantly less favorable.

Slightly better mood in retail

In eastern German retail, the business climate brightened somewhat in November. While the retail sector reported significantly better business, this was only slightly the case for wholesalers.

Significant decline in the service and construction sectors

In contrast, the business climate index fell significantly in the eastern German service sector. This also applies to the main construction industry in eastern Germany. The construction companies surveyed stated that their business situation was slightly worse than in October. At the same time, they significantly lowered their expectations for future business development.

There was a slight deterioration in the manufacturing sector. The industrial companies surveyed assessed their current business situation as slightly worse than in the previous month. Business expectations were also slightly less favorable.

The Ifo Business Climate East Germany is based on around 1,700 reports from companies. Every month, the survey asks about the current business situation and expectations for the next six months.