Business Climate Index for Germany’s Self-Employed Recovers Somewhat
The business climate for Germany’s self-employed improved in March, finds the latest index for this segment (“Jimdo-ifo Business Climate Index for the Self-Employed”). It rose from minus 1.1 points (not seasonally adjusted) in February to plus 1.8 points (not seasonally adjusted) in March. This puts it above zero for the first time since February 2022. “Business is better at the beginning of spring,” says ifo expert Katrin Demmelhuber. “As with the economy as a whole, however, there’s still plenty of room for improvement.”
This time, the main reason for the improvement in the business climate is that current business is noticeably better. But business expectations are also more favorable. “Pessimism has almost disappeared from assessments of the months ahead,” Demmelhuber adds. However, many self-employed people are having difficulty obtaining loans.
Self-employed people working in the service sector are dissatisfied with their order situation. Although sales have been stagnant, more businesses expect them to increase in the near future. The situation remains difficult for the self-employed in retail, where the business climate has again worsened slightly, accompanied by rising uncertainty.
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.
