Ifo Institute Releases Monthly Assessment of Germany's Economic Climate - Companies in eastern Germany continue to show positive sentiment.
In the processing industry, East German firms had a more optimistic view of their business condition than in April, as indicated by the Ifo. Their outlook for the upcoming six months drastically improved as well. In the service sector, the business climate saw an uptick too: both the evaluation of the present situation and the anticipations for the future improved accordingly.
Much the same can be said for trade. The report claimed these firms rated their current business as significantly better than the previous month. Retail and wholesale businesses raised their expectations for the next half year. However, mixed signals came from the major construction sector. While the assessment of the current situation deteriorated, the expectations for the future considerably brightened.
The Ifo Business Climate East Germany report is based on feedback from about 1,700 companies. Each month, they're inquired about their present business situation and future expectations for the next six months, though they're not asked for the specific reasons behind their assessments.
