ifo Business Climate Saxony Falls (September 2021)
The ifo Business Climate Index Saxony fell a little in September. The barometer of business sentiment in Saxony’s economy declined from 102.7 to 101.8 points, primarily as a result of a sharp deterioration in assessments of the current business situation. Business expectations for the coming six months rose marginally in September.
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The mood in Saxony’s manufacturing cooled appreciably, with companies lowering their business expectations considerably for the coming six months. Their assessments of the current situation also fell slightly.
In Saxony’s service sector, the ifo Business Climate Index rose somewhat in September. This was primarily due to noticeably improved business expectations for the coming six months. However, survey participants were clearly less satisfied with their current business.
Sentiment in Saxony’s trade cooled a little in September, with the businesses surveyed stating they were less satisfied with their current situation. They also lowered their business expectations.
In Saxony’s construction industry, the mood cooled further in September. The construction companies surveyed lowered both their assessments of the situation and their business expectations slightly.
Joachim Ragnitz and Marcel Thum
Executive Directors, Dresden Branch of the ifo Institute
ifo Business Climate Saxony
(Index, 2015 = 100, seasonally adjusted)
| 09/20 | 10/20 | 11/20 | 12/20 | 01/21 | 02/21 | 03/21 | 04/21 | 05/21 | 06/21 | 07/21 | 08/21 | 09/21 | |
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Source: ifo Business Survey.
© ifo Institute
ifo Business Climate Saxony by Sector
(Balances, seasonally adjusted)
| 09/20 | 10/20 | 11/20 | 12/20 | 01/21 | 02/21 | 03/21 | 04/21 | 05/21 | 06/21 | 07/21 | 08/21 | 09/21 | |
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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.
