Ifo Business Survey for June 2003

The results of the Ifo Business Survey of June confirm the most recent forecast of the Ifo Institute that a slight economic recovery will occur in the second half of the year. In western Germany the business climate brightened in trade and industry for the second time. Both the current business situation and the expectations for the coming half year improved. In eastern Germany the indicator also moved upward. This, however, was only the result of less pessimism concerning the business outlook, whereas judgements of the business situation were even a little more negative than the previous month. In western Germany the business climate improved in all surveyed sectors, particularly in retailing. In eastern Germany construction clearly recovered, but also in manufacturing the upward trend continued after having been interrupted in May. In wholesaling and retailing, however, the climate indicator worsened somewhat.