The US tariffs and disappointed expectations of the new federal government create a bad mood among the East German companies.
The business climate index for the regional economy sank in April compared to the previous month by 1.5 points to 86.5 points, as the IFO Economic Research Institute announced in Dresden. Except for the construction industry, expectations deteriorated in all areas.
The reasons for the bad mood of the East German companies are diverse, said the deputy head of the IFO branch in Dresden, Joachim Ragnitz. “In addition to the US tariffs on numerous products, the disappointment also caused disillusionment after the announcements of the new federal government.”
The business climate in the processing industry has therefore deteriorated significantly. Although the companies improved their assessment of the current situation slightly, but at the same time they looked much more pessimistic into the future than in the previous month.
The mood also clouded clearly in the service industry. Here the current business situation was noticeably worse, and the companies assessed the business expectations for the coming months a little less favorable. A similar picture was shown in the trade, only retailers look a little more optimistic about future business development than in the previous month.
The IFO business climate East Germany is based on around 1,700 reports from companies. Every month, every month is asked for the current business situation and expectations for the next six months, but not for the exact reasons for it.