Improvement in Business Climate for Germany’s Self-Employed
There has been a noticeable improvement in the business climate for Germany’s self-employed, finds the latest index for this segment (“Jimdo-ifo Business Climate Index for the Self-Employed”). The indicator rose to minus 1.1 points* in February, up from minus 7.3 points* in January. “More and more self-employed people are feeling hopeful about the months ahead,” says Klaus Wohlrabe, Head of Surveys at ifo. “Also, uncertainty is in decline.”
The most noticeable improvement was in expectations for the coming months. Although assessments of the current situation were somewhat better, that indicator remains far below the one for the economy as a whole.
Self-employed people working in the service sector are still dissatisfied with the order situation. But despite experiencing little movement in terms of sales, they are expecting these to rise again over the next few months.
The ifo Institute has been publishing the Jimdo-ifo Business Climate Index for the Self-Employed since August 2021. This includes both solo self-employed people and microenterprises (with fewer than nine employees). 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.
*(not seasonally adjusted)
