The mood in large parts of the east German economy deteriorated significantly in June. The business climate index fell to 93.3 points after 96.0 points in May, as the Ifo Institute announced on Thursday in Dresden. While the assessments of the situation at the companies surveyed fell slightly, their outlook for the next six months deteriorated drastically.
In manufacturing, the business climate cooled off significantly. The companies also assessed the business situation somewhat less positively than in the previous month. At the same time, her outlook for the next six months collapsed dramatically. Sentiment in the service sector also fell slightly. In addition, both the assessments of the situation and the business expectations of companies deteriorated slightly.
In retail, too, companies rated their business somewhat less positively than in the previous month. However, the retail companies surveyed rated current business slightly better than in May. However, the respondents lowered the outlook slightly. In construction, the business climate cooled slightly in June. While they raised their assessment of the situation somewhat, their business expectations clouded over noticeably.
For the Ifo business climate, 1,700 East German companies from various sectors are surveyed every month about their business situation and the outlook for the next six months. The index is an early indicator for the economic trend. (dpa)