Business Climate of the Self-Employed in Germany has improved
The business climate for the solo self-employed and microenterprises in Germany improved in May. The “Jimdo-ifo Business Climate Index for the Self-Employed” rose to -11.8 points*, up from -13.8 points* in April. Business fared better, with only a few self-employed expressing dissatisfaction with their current situation. Expectations also brightened up somewhat, although they were still marked by skepticism. “The self-employed are increasingly hoping that the worst of the economic downturn is behind them,” says ifo expert Katrin Demmelhuber.
Despite improved sentiment among the self-employed, the indicator remained slightly worse than for the economy as a whole. The climate was especially positive for management consultancies, and architectural and engineering firms also reported good business. “The self-employed still have plenty of room in their order books,” says Demmelhuber. They are also planning fewer sales prices increases in the coming months to counteract the lack of orders.
The ifo Institute has been publishing the Jimdo-ifo Business Climate Index for solo self-employed persons and microenterprises (fewer than nine employees) since August 2021. As in the composite index, all sectors of the economy are taken into account. However, its main focus is the service sector.
*Balances, not seasonally adjusted
Publication
ifo Konjunkturperspektiven is a monthly German-language online publication that presents the latest results from ifo’s business surveys in the form of graphics and tables.
