Ifo Business Survey for August 2004

After the improvement of the previous month, the business climate in German trade and industry clouded over somewhat in August. While the current business situation was again assessed less negatively than in July, the expectations of the enterprises deteriorated slightly. The decline in the climate indicator was a little more noticeable in eastern than in western Germany. High oil prices might have induced heightened scepticism among enterprises, but on the whole the survey results speak for a continuation of the economic upswing, which will remain moderate, however, and will continue to be supported by exports.