ifo Business Climate Eastern Germany Rises Once More (February 2021)
Sentiment among companies in eastern Germany improved markedly in February. The ifo Business Climate Index for the entire regional economy rose to 90.4 points from 88.9 points in January. The survey participants’ assessments of the current situation and their expectations alike were better than in January. Of the two, the improvement in their assessments of the current situation was more pronounced.
In eastern German manufacturing, the upward trend of last month continued and the business climate brightened significantly in February. Manufacturers assessed their current business as slightly better than in the previous month, and they raised their expectations for the next six months considerably.
Following last month’s slump, the ifo Business Climate Index recovered a little in the eastern German service sector. While assessments of the current situation were noticeably better in February, expectations rose slightly.
The mood in eastern German trade improved appreciably, with the business climate heading upward for both wholesale and retail trade. This was mainly attributable to decidedly better expectations; assessments of the current situation continued their slight downward trend.
In eastern German construction, the business climate brightened notably in February. The construction companies surveyed assessed both their current business and their outlook as perceptibly better than in the previous month.
Joachim Ragnitz and Marcel Thum
Executive Directors, Dresden Branch of the ifo Institute
