ifo Business Climate Index for Eastern Germany Stops Falling (December 2020)
Sentiment among companies in eastern Germany improved a little in December, bringing to an end the downward trend that began in October. The ifo Business Climate Index for the entire regional economy rose from 92.1 to 92.4 points. While survey participants’ assessments of their current situation were decidedly better, their business expectations dimmed somewhat.
In eastern German manufacturing, the business climate cooled marginally in December. Manufacturers assessed their current business as slightly better than in the previous month, but they revised their outlook for the coming six months significantly downward.
The ifo Business Climate Index climbed a little in the eastern German services sector, a change largely attributable to the rise in assessments of the current situation. Expectations for the coming six months were somewhat gloomier.
In eastern German trade, sentiment was marginally better. Assessments of the current situation and business expectations both improved slightly. While the business climate rose for wholesalers, it fell for retailers.
The mood in eastern Germany’s construction industry clouded over a little in December. The companies surveyed raised their overall assessments of the current situation perceptibly, but at the same time their business expectations for the coming six months fell markedly.
Joachim Ragnitz and Marcel Thum
Executive Directors, Dresden Branch of the ifo Institute
