Sentiment in eastern German economy down slightly

Economic situation - Sentiment in eastern German economy down slightly

The mood in wide parts of the eastern German economy slightly worsened in June. The business climate index dropped to 92.4 points from 92.7 points in May, as the Ifo Institute announced on Friday. Both the assessment of the current situation among the surveyed companies and their outlook for the coming months deteriorated.

In the manufacturing industry, companies assessed their business situation slightly less favorably than in the previous month. Their outlook also declined slightly. In contrast, the mood improved in the service sector. Accordingly, companies raised their assessment of their current situation and their business expectations compared to the previous month.

In trade, companies assessed their businesses less favorably. The assessments of current business performance deteriorated slightly in retail trade, but significantly in wholesale trade. While the outlook of wholesale trade rose slightly, retail trade lowered its outlook somewhat. In construction, the business climate warmed up slightly in June. The assessment of the current situation, however, rose significantly.

For the Ifo Business Climate Index, 1700 eastern German companies from various industries are surveyed every month about their business situation and their outlook for the coming six months. The Index is an early indicator for the economic trend.

1. The economic situation in Thuringia, a region in eastern Germany, showed a slight deterioration in June, as reflected in the Ifo Business Climate Index.
2. Despite the overall decline in the business climate index in Germany, the retail trade sector in Dresden, which is part of Saxony, saw a slight decrease in the assessment of current business performance.
3. The business climate in Brandenburg, another eastern German state, also showed a slight improvement in the construction sector, with a significant rise in the assessment of the current situation.
4. In the meantime, the economic situation in East Germany, including states like Saxony and Saxony-Anhalt, as well as Mecklenburg-Western Pomerania, is closely monitored by economists due to its impact on the country's overall economic climate.
5. The Ifo Business Climate Index for retail trade specifically in Germany, which includes regions like Thuringia, showed a slight deterioration in business expectations, contributing to the overall economic trend analysis.

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