Manufacturing (east):
Declining pessimism

Unlike western Germany, the current business situation in eastern Germany was again judged more negatively. This affected all areas, but especially food and beverages. The main reason for the dissatisfaction is the inadequate order reserves, although the number of such responses decreased slightly. Excess inventories have been reduced in part. The eastern German enterprises view future business development with decreased pessimism, but still plan to cut back production activity. In western and eastern Germany sale prices have fallen, and the survey responses indicate that this trend might last in the coming months. An end of staff reductions is not in sight, neither in the old nor in the new Länder.