Ifo Institute: Business climate in the East stagnates

The mood in the eastern German economy remains unchanged at a low level in the fall. The business climate index for eastern Germany stagnated at 88.3 points in October, according to the Ifo Institute in Dresden. At the same time last year, the index stood at 89.9 points. The companies surveyed assessed their business situation as slightly better than in the previous month, while business expectations were slightly less favorable than in September.

Poor sentiment in the retail and service sectors

In eastern German retail, the business climate deteriorated significantly in October. While the retail sector reported a slight deterioration in business, the situation in the wholesale sector deteriorated significantly. The business climate index also fell slightly in the eastern German service sector.

In contrast, the mood in the manufacturing industry rose slightly. The industrial companies surveyed assessed their current business situation as significantly better than in the previous month. Business expectations were slightly worse. The business climate in the eastern German construction industry also improved slightly in October. The construction companies surveyed stated that their business situation was slightly worse than in September. At the same time, they raised their expectations for future business performance slightly.

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