ifo Business Climate Saxony: Sentiment Rises Again (November 2022)

The ifo Business Climate Index for Saxony rose strongly in November. The barometer of business sentiment in Saxony’s economy climbed from 88.8 points in October to 91.7 points. The assessment of the current business situation and the business expectations of the companies surveyed increased significantly.

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The climate in Saxony’s manufacturing sector improved noticeably in November. The manufacturing companies surveyed assessed their current business situation as tangibly better than in the previous month. Their business expectations improved slightly.

In Saxony’s service sector, the Business Climate Index rose strongly in November. The service providers surveyed assessed their business situation as significantly better and raised their expectations for the coming months noticeably.

In Saxony’s trade, the climate warmed slightly. The retail companies surveyed assessed their current business situation noticeably worse than in the previous month. At the same time, their business expectations increased considerably.

In Saxony’s construction, the business climate improved strongly in November. Construction companies in Saxony assessed their current business situation significantly better than in the previous month and were noticeably less pessimistic about future business developments.

Joachim Ragnitz and Marcel Thum
Executive Directors, Dresden Branch of the ifo Institute

ifo Business Climate in Saxony, November 2022

ifo Business Climate Saxony

(Index, 2015 = 100, seasonally adjusted)

	11/21	12/21	01/22	02/22	03/22	04/22	05/22	06/22	07/22	08/22	09/22	10/22	11/22
Climate	98.1	97.5	100.3	101.6	92.9	96.6	95.4	94.8	93.2	91.3	87.2	88.8	91.7
Situation	100.5	100.8	101.4	104.5	99.3	101.8	103.5	103.5	102.8	100.1	97.2	96.4	98.5
Expectations	95.7	94.3	99.1	98.7	86.8	91.7	87.9	86.9	84.6	83.2	78.2	81.8	85.4

Source: ifo Business Survey.
© ifo Institute

ifo Business Climate Saxony by Sector

(Balances, seasonally adjusted)

	11/21	12/21	01/22	02/22	03/22	04/22	05/22	06/22	07/22	08/22	09/22	10/22	11/22
Saxony	20.2	16.9	17.1	15.9	-3.0	-27.3	-21.0	-9.4	-4.5	1.1	4.0	4.2	-2.9
Manufacturing	14.3	8.3	9.1	12.9	-10.7	3.0	1.3	0.9	-3.2	-8.8	-11.3	-18.0	-14.1
Service sector	15.5	15.7	25.0	29.1	14.5	23.8	18.0	18.5	13.4	5.3	-4.3	3.4	13.3
Trade	4.9	0.2	-1.1	11.3	-8.3	-6.8	0.6	-25.0	-22.5	-23.1	-38.2	-26.9	-24.3
Construction	-0.1	-2.7	1.2	-10.0	-25.5	-30.0	-12.7	-8.4	-15.1	-18.3	-21.9	-30.4	-20.9

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.

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