Construction (east):
Business climate brightens noticeably

In eastern Germany business conditions and expectations were assessed somewhat less negatively, both in building construction and in civil engineering. Equipment utilisation decreased to 71%, but was still above the corresponding value of the previous year (66%). The range of order reserves expanded to 2.3 months (June 2002: 1.9 months). In western Germany contractors expect pressure on prices to weaken, and in eastern Germany room for price increases was reported. Staff reduction will continue unchanged in the west in the opinion of the enterprises, and also in the east more staff reductions are now expected although firms had been more optimistic here in recent surveys.