Ifo Business Survey for October 2004

In German trade and industry, the business climate did not change noticeably in October. The enterprises assessed their current business situation just as negatively as in the previous month, but the expectations improved somewhat. In western Germany the climate indicator was slightly higher, with improved judgements of both the current situation and the outlook. In eastern Germany the climate experienced a weak deterioration; the improved expectations could not balance out the more negative judgements of the current situation. On the whole, the results of the October survey confirm the forecast of the German institutes for a continued, moderate upswing, but not strong enough to improve the labour market.