Business Climate in Germany Improves for Solo Self-Employed Persons and Microenterprises
The business climate for microenterprises and solo self-employed persons in Germany has improved, according to the latest index for this segment (“Jimdo-ifo Business Climate Index”). This index rose to minus 1.1 points (not seasonally adjusted) in June, up from minus 2.5 points in May. “Business is considerably better,” says Klaus Wohlrabe, Head of Surveys at ifo, “but there are still major concerns with regard to the second half of the year.”
Companies were significantly more satisfied with their current business. The indicator for the current situation rose to its highest level to date, driven primarily by the service sector. Expectations, however, turned somewhat more pessimistic, most notably among retailers.
Price increases remain on the agenda, with one in two companies planning to raise prices.
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. 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.
