According to the Dresden IFO Institute, the mood in the East German economy deteriorated somewhat in September. The business climate index dropped from 89.1 points in August to 88.4 points, as the institute said. The companies surveyed assessed both their current business situation and their expectations for the coming months a little worse than in the previous month.
In the processing industry, the situation assessment lightly brightened in September, but expectations decreased significantly. In the service sector, the business climate cooled down slightly – the companies were less satisfied with the current location and looked a little more pessimistic.
The mood overall also clouded over in the trade. While wholesale assessed its business slightly better than in August, retail even reported a noticeably better location. In the case of expectations, however, the retail trade remained reserved, wholesale wholesale was significantly more skeptical.
The business climate index also gave in in the main East German construction industry. The construction companies surveyed rated their current situation a little worse, but looked at the coming months with a little less pessimism.
The IFO business climate for East Germany is based on around 1700 monthly reports from companies from various industries. They indicate how to assess their current business situation and what expectations they have for the next six months. The index is considered an important early indicator of economic development.