Half of Germany’s Self-Employed Are Short on Orders

Half of the self-employed in Germany surveyed (50.5%) complained in January of too few orders, up from 48.5% in October. The proportion among the self-employed is therefore significantly higher than the proportion in the economy as a whole of 40.2%. “The economic dry spell for the self-employed has intensified,” says ifo expert Katrin Demmelhuber, “The lack of orders remains a core problem.”

The business climate for the self-employed and microenterprises fell to a new low at the start of the year. The “Jimdo-ifo Business Climate Index for the Self-Employed” fell to -24.9 points*, down from -23.4 points* in December. “The economic decline among the self-employed is continuing,” adds Demmelhuber. The assessment of current business was considerably more negative. Although expectations improved slightly, they nevertheless remained at a very poor level.

The ifo Institute has been publishing the Jimdo-ifo Business Climate Index for solo self-employed persons and microenterprises (with 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