Ifo: Sentiment in East Germany's economy on the rise

The mood in eastern German companies continued to brighten in March. The Ifo Institute's business climate index rose by 0.4 points to 88.1 points, according to the Dresden branch. While companies assessed their current situation as slightly worse than in February, their expectations for the coming months improved slightly. The institute did not give any reasons.

In the manufacturing sector, the business climate deteriorated slightly. Although industrial companies assessed their situation slightly better, their expectations were somewhat more pessimistic.

Service providers more confident

Eastern German service providers were much more optimistic: Despite slightly negative assessments of the situation, business expectations for the coming months increased noticeably.

The retail sector was also slightly more positive. Retailers and wholesalers rated both their current situation and business prospects slightly better than in February.

Construction continues to have subdued expectations

The index rose slightly in the main construction sector. The companies surveyed reported a slightly improved business situation, but slightly lowered their expectations for future development.

The Ifo Business Climate Index is considered an important leading indicator for economic development. It is based on monthly reports from around 1,700 companies in eastern Germany, which assess their situation and expectations for the next six months.