Improvement in Business Climate for Germany’s Self-Employed

The business climate for the self-employed in Germany improved slightly in July, with the “Jimdo-ifo Business Climate Index for the Self-Employed” rising to -13.4* points, up from -14.0 points* in June. Business fared better, with some of the self-employed still expressing dissatisfaction with their current situation. Their expectations continued to be affected by pessimism. “The self-employed are resisting the current slump,” says ifo expert Katrin Demmelhuber. “However, the order situation remains difficult.”

A lack of demand is continuing to weigh on many self-employed people. 44.4% were affected by a lack of orders in July, compared to 44.0% in April. Similar to the previous quarter, around a quarter of those surveyed stated that they were unable to offer their goods or services without restrictions due to a lack of staff or supply bottlenecks, among other things.

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