ifo Business Climate Saxony Rises Sharply (June 2021)
In June 2021, the ifo Business Climate Index Saxony rose sharply once again. The barometer of business sentiment climbed from 99.3 to 104.4 points, driven by the steep rise in assessments of the current situation. There was a noticeable improvement in business expectations as well.
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In June, the mood in Saxony’s manufacturing brightened further. Participating companies reported a clear improvement in their assessments of the current situation, and their business expectations also saw a slight improvement.
In Saxony’s service sector, the ifo Business Climate Index rose markedly again in June. Survey participants’ assessments of the current situation and their business expectations both made significant gains compared to the previous month.
Sentiment in Saxony’s trade improved slightly in June. Current business for wholesalers and retailers was markedly better than the previous month, while expectations for the coming six months improved marginally.
The business climate in Saxony’s construction became much brighter in June. Compared to the previous month, companies’ assessments of the current situation and their business expectations surged.
Joachim Ragnitz and Marcel Thum
Executive Directors, Dresden Branch of the ifo Institute
ifo Business Climate Saxony
(Index, 2015 = 100, seasonally adjusted)
| 06/20 | 07/20 | 08/20 | 09/20 | 10/20 | 11/20 | 12/20 | 01/21 | 02/21 | 03/21 | 04/21 | 05/21 | 06/21 | |
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| Expectations |
Source: ifo Business Survey.
© ifo Institute
ifo Business Climate Saxony by Sector
(Balances, seasonally adjusted)
| 06/20 | 07/20 | 08/20 | 09/20 | 10/20 | 11/20 | 12/20 | 01/21 | 02/21 | 03/21 | 04/21 | 05/21 | 06/21 | |
| Saxony | |||||||||||||
| Manufacturing | |||||||||||||
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| Construction |
Source: ifo Business Survey.
© ifo Institute
The ifo Business Climate for Saxony is based on approx. 500 monthly survey responses from businesses in manufacturing, the service sector, trade, and construction. Companies are asked to give their assessments of the current business situation and their expectations for the next six months. They can describe their situation as “good,” “satisfactory,” or “poor” and their business expectations for the next six months as “more favorable,” “unchanged,” or “less favorable.” The balance value of the current business situation is the difference in the percentage shares of the responses “good” and “poor”; the balance value of the expectations is the difference in the percentage shares of the responses “more favorable” and “less favorable.” The business climate is a transformed mean of the balances of the business situation and the expectations. To calculate the index values, the transformed balances are all normalized to the average for the year 2015.
