Ifo business climate in eastern Germany improves slightly
The mood among eastern German companies improved slightly in November. The business climate index for the regional economy rose by 0.7 points compared to the previous month to 90.7 points, the Ifo economic research institute announced on Wednesday. The companies surveyed assessed both their current situation and their outlook for the next six months as slightly better.
The economic researchers observed a positive trend in the construction industry in particular. In the manufacturing sector, companies reported slightly better business than in the previous month. However, they assessed the outlook for the coming months as slightly worse than in October. The trend in wholesale was extremely positive compared to the previous month. In contrast, retail companies were more pessimistic about the future.
In recent months, the mood in the eastern German economy has steadily deteriorated. In April - the highest level so far this year - the barometer was still at 96.6.
The business climate index is based on reports from around 1700 companies. Every month, the survey asks about the current business situation and expectations for the next six months, but not about the exact reasons for this.
Despite the slight improvement in the Ifo business climate in eastern Germany, the overall economic situation in the region has been deteriorating in recent months. Companies in the manufacturing sector, while reporting better current conditions, hold a slightly more pessimistic outlook for the next six months compared to October.
Source: www.dpa.com
