Article in Journal

Manufacturing (east):
Better utilisation of production capacities


ifo Institut für Wirtschaftsforschung, München, 2003

in: ifo Konjunkturperspektiven, 2003, 30, Nr. 04, 19-22

The eastern German industrial firms evaluated their business situation a little less negatively than in March although their order position also deteriorated. In the appraisal of the business outlook the sceptical voices predominated again; also with regard to future export developments the firms are more cautious. An increasing number of companies plan to cut back production in the next months. In both parts of Germany capacity utilisation increased, in the west to 83.6%, in the east to 81.2% (incl. food and beverages). While the enterprises in western Germany reported a deteriorated in their competitive position, in eastern Germany it improved again slightly. On foreign markets outside the EU a slight worsening occurred in both parts of Germany. The eastern German enterprises expect sinking sale prices in the coming months.

JEL Classification: D240,L600