Business Climate for Germany’s Self-Employed Clouds Over
The business climate for Germany’s self-employed has deteriorated, finds the latest index for this segment (“Jimdo-ifo Business Climate Index for the Self-Employed”). This index fell to minus 3.2 points (not seasonally adjusted) in April, down from plus 1.8 points (not seasonally adjusted) in March. “In contrast to the economy as a whole, the recovery made in the previous month quickly disappeared again,” says ifo expert Katrin Demmelhuber. “Developments for the self-employed and microenterprises currently lack momentum.”
Very few companies gave positive assessments of their current business. Their expectations grew more pessimistic, which contrasts with the continued decline in pessimistic expectations across the economy as a whole. “Concerns among the self-employed have intensified, as has uncertainty,” Demmelhuber says.
Responses from service providers indicate that the positive trend they experienced over the previous five months is over. Companies were less satisfied with their business situation and the self-employed were cautious about their prospects. Concerns relating to the order situation increased. In light of the weak sales trend, the majority of retailers gave negative assessments of their situation. There is still major unease over the business outlook for the months ahead.
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.
