Overview

• The Ifo business climate index for East Germany increased by 2.6 points to 89.2 in May, reversing April’s pronounced pessimism among local firms.
• Manufacturers recorded the strongest uplift in both current conditions and expectations, and service-sector companies also reported noticeably improved outlooks.
• Retailers rated their ongoing operations significantly better, while wholesalers remained more cautious about market prospects.
• Construction firms saw a slight downtick in their assessment of current activity but raised their expectations for the next six months.
• Executives voiced hope that the economic trough in East Germany has been overcome, citing easing tariff concerns and promised federal growth stimuli.