ifo Business Climate Eastern Germany: Economy on the Upswing (July 2020)
The eastern German economy continued to recover in July 2020. The ifo Business Climate Index for the entire regional economy in eastern Germany climbed from 88.8 points to 92.5 points. Survey participants’ assessments of the current situation and their business expectations both rose strongly compared to the previous month.
Eastern German manufacturing recorded the strongest increase in the business climate. The industrial companies surveyed rated their current business much better and are now looking to the future with greater optimism.
In the eastern German service sector, too, the ifo Business Climate Index rose strongly in July. Participating service providers raised their outlook considerably higher, while their assessments of the current situation also improved significantly.
The business climate in eastern German trade was tangibly brighter. However, the wholesalers surveyed assessed their current business less positively than in the previous month. Among retailers, both subindices rose.
In eastern German construction, the ifo Business Climate Index saw a strong uptick in July. While the construction companies surveyed raised their assessments of the current situation only slightly, their business expectations improved enormously.
Joachim Ragnitz and Marcel Thum
Executive Directors, Dresden Branch of the ifo Institute
