Every month the IFO Institute surveys more than 7,000 enterprises in west and east Germany on their appraisals of the business situation (good/ satisfactory/poor) and their expectations for the next six months (better/same/worse). The replies are weighted according to the importance of the industry and aggregated. The percentage shares of the positive and negative responses to both questions are balanced and a geometric mean is formed from the balances divided according to east and west Germany.
The series of balances thus derived are linked to a base year (currently 1991) and seasonally adjusted.
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