Construction (east):
Significant climate improvement in civil engineering

In eastern Germany the business conditions improved, but the level is still as low as it was three and a half years ago. With regard to the future output pessimism grew again, particularly in civil engineering. With stepped-up production activity equipment utilisation climbed to 70% and corresponded again to the previous year value. Order reserves were unchanged at 2.2 production months (previous year: 1.9 months). Both in the west and in the east, the enterprises expect price pressure to ease in the coming months. While in western Germany staff reduction will continue (for 42% of the enterprises on balance), in the east only half as many surveyed firms (balance: 20%) expect dismissals as in October 2002.