Business Climate in Germany Drops Slightly for Solo Self-Employed Persons and Microenterprises
The business climate for microenterprises and solo self-employed persons has deteriorated slightly, according to the latest index for this segment (“Jimdo-ifo Business Climate Index”). It slipped to minus 12.8 points (not seasonally adjusted) in August, down from minus 12.1 points in July. “At the moment, there is sadly little likelihood of an improvement,” says Klaus Wohlrabe, Head of Surveys at ifo, “The coming months are giving these enterprises deep worry lines.”
Companies’ assessments of their current business situation were slightly less upbeat than in the previous month. Service providers are still the most satisfied with their current business. Although expectations have risen somewhat, they are characterized by a great deal of pessimism. The retail sector in particular is facing some difficult months. “Even microenterprises and solo self-employed persons can’t escape the general sense of uncertainty,” Wohlrabe adds.
However, price plans fell for the third time in a row, although they remain at a high level.
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.
