The mood in the East German economy deteriorated slightly in February. According to the Ifo Institute in Dresden, the business climate index fell from 89.8 points in January to 89.4 points. Companies assessed their current situation as slightly better than in the previous month, but were also slightly more pessimistic about the coming months.
Industry with slightly dampened expectations
The business climate in the manufacturing sector cooled slightly in February. Although industrial companies assessed their current business slightly better than in January, they lowered their expectations for the next three months.
Service providers slightly more confident
The mood in the service sector brightened slightly. Companies were more satisfied with their current business situation and also raised their expectations slightly.
Wholesale with weaker situation
The business climate in the retail sector deteriorated slightly overall. In wholesale, the current situation was rated significantly worse than in the previous month, although expectations improved. Retailers assessed current business only slightly worse and were somewhat more pessimistic about the coming months.
Construction is less skeptical about the future
The mood in the construction industry deteriorated slightly. Companies assessed their current situation as slightly worse, while pessimism for the coming months decreased somewhat.
The Ifo Business Climate Index for eastern Germany is based on around 1.700 monthly reports from companies in industry, the service sector, trade and construction and is regarded as an important early indicator of economic development.
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