Ifo researchers see business climate in the East in decline

A few weeks before the early general election, the mood in the East German economy has deteriorated further. Researchers at the Ifo Institute in Dresden see the monthly business climate survey "in decline". The value fell from 86.9 points in December to 85.5 in January. Only an Ifo business climate index above 100 indicates a positive mood among companies.

Sentiment in industry deteriorated significantly

"The business climate in the eastern German manufacturing industry deteriorated very significantly in January. The industrial companies surveyed assessed their current business situation as noticeably worse than in the previous month," it said. In terms of business expectations, skepticism had increased very sharply.

Service providers see light and shade

In the eastern German service sector, the researchers identified a slight deterioration in the business climate. The service companies had slightly raised their assessment of their current business and at the same time assessed their business expectations for the coming months somewhat more pessimistically, they said.

Hope especially in retail

In retail, on the other hand, the climate improved somewhat in January - especially in the retail sector. Retailers rated their business expectations slightly more positively, while wholesalers rated them slightly worse. The construction sector reported a considerably improved business situation, although expectations have already fallen significantly again.

Business Climate Index is regarded as an early indicator for the economy

The Ifo Business Climate for Eastern Germany is based on around 1,700 monthly reports from companies in various sectors. They are asked to assess their current business situation and share their expectations for the next six months. The Ifo Index is considered a very accurate early indicator for the further course of the economy.