Business Climate for Germany’s Self-Employed Clouds Over
The business climate for Germany’s self-employed has deteriorated, finds the latest ifo survey for this segment (“Jimdo-ifo Business Climate Index for the Self-Employed”). The index fell to -12.6 points* in June, down from -8.6 points* in May. “There’s a kind of domino effect at work here,” says ifo expert Katrin Demmelhuber. “Since many large companies are short of orders, they’re also placing fewer orders with the self-employed.”
Concerns about the further development of business increased significantly once again. The self-employed were also dissatisfied with their current business. In the economy as a whole, the indicators are also pointing downward, although the overall business situation is still considered favorable.
Among service providers, expectations declined noticeably and assessments of the current situation were also worse. Sales declined and order backlogs continued to shrink. Business-related service providers such as IT or management consultancies felt the lack of orders from manufacturing. “Many private households are also holding back on orders due to continued high inflation,” Demmelhuber adds. The business climate in retail deteriorated sharply. Assessments of the current situation here were significantly worse, while pessimism about the future was also higher than in the previous month.
The ifo Institute has been publishing the Jimdo-ifo Business Climate Index for the Self-Employed since August 2021. This includes both solo self-employed people and microenterprises (with fewer than nine employees). As in the composite index, all sectors of the economy are taken into account. However, its main focus is the service sector. The index is based on a collaboration with Jimdo, a provider of online tools specially geared toward the solo self-employed and small businesses, and aims to improve the visibility of microenterprises. In addition to Jimdo, VGSD e.V. – Germany’s association of founders and self-employed people – is also helping to attract new participants.
*(not seasonally adjusted)
