The mood in the East German economy brightened in November.
“The East German companies surveyed rated both their business situation and their business expectations somewhat better than in the previous month,” said the Dresden Ifo Institute. The sentiment barometer for the regional economy in East Germany moved from 89.3 points in October to 90.0 points in November. If the index rises, it indicates an improvement; a falling value is a sign of a slowdown.
Industrial companies more optimistic
It was said that the business climate in industry warmed slightly in November. Companies once again assessed their current situation somewhat better than last month and slightly increased their expectations for the coming months. This trend was also noted in the service sector.
Business climate in retail deteriorates
However, the climate in trade deteriorated in November. Wholesalers rated the current business situation significantly better than in the previous month, while retailers assessed current business noticeably more pessimistically than in October, it said. At the same time, wholesalers revised their expectations downward slightly and retailers revised them considerably.
The Ifo business climate for Eastern Germany is based on around 1,700 monthly reports from companies in various industries. You will be asked to assess your current business situation and share your expectations for the next six months. The Ifo index is considered an accurate leading indicator for the economy.