The mood in the East German economy deteriorated slightly in February.
As the Ifo Institute in Dresden announced, the business climate index fell from 89.8 points in January to 89.4 points. Companies assessed their current situation somewhat better than in the previous month, but at the same time were somewhat more pessimistic about the coming months.
Industry with slightly dampened expectations
In the manufacturing sector, the business climate cooled somewhat in February. Although industrial companies assessed their current business somewhat better than in January, they lowered their expectations for the next three months.
The mood in the service sector brightened slightly. Companies were more satisfied with their current business situation and also raised their expectations slightly.
Overall, the business climate in retail deteriorated somewhat. In wholesale, the current situation was assessed as significantly worse than in the previous month, but expectations improved. Retailers assessed current business only slightly worse and were somewhat more pessimistic about the coming months.
The Ifo business climate index for eastern Germany is based on around 1,700 monthly reports from companies in industry, services, trade and construction and is considered an important leading indicator of economic development.
