Services: Improved Business Climate

In the service sector, the business outlook has improved for the fourth time in succession and is now significantly more optimistic than the long-term average. Business confidence in the services is very good. The business climate indicator reached its highest value so far this year and is well above its long-term average. In the first quarter, according to the Federal Statistical Office, business service providers increased their sales significantly (+ 6.3%) compared to the previous year. The responses of the firms participating in the business survey suggest a further increase in sales, even if the corresponding balance values are slightly below those of the first quarter. In the coming months, an increase in demand is also expected. Satisfaction with the current business situation was still widespread and the assessment of order backlogs was also very positive. This is also reflected in the increasing number of employees. According to the Federal Statistical Office, in the first quarter retail staff increased by 3.1% compared to the previous year. The companies participating in the business survey continued to report above-average growth in the number of employees in the past months. According to the survey results, this expansion is expected to continue at a slightly reduced rate in the coming months. However, companies are having increased problems in finding suitable staff; there were increasing reports of constraints due to shortages of skilled personnel (July: 31%).