Manufacturing (east):
Rays of hope

In eastern Germany the current business situation improved to a barely satisfactory level. Enterprises are still not satisfied with their order reserves, but reports of excess inventories were only scattered. A reduction in production activity in the coming months is hardly likely. Although the firms are a little more sceptical with respect to their future chances on foreign markets, pessimism regarding overall expectations are clearly weakened. In western and eastern Germany an end of staff reduction is not in sight according to the survey responses. While the enterprises in the west reckon with price stability in the next months, their colleagues in the east expect to make further price concessions.