Business Climate for Germany’s Self-Employed Clouds Over

The self-employed revised their assessments of their current business situation downward, and their outlook for the months ahead was more pessimistic. “The lull in orders and sales development continues,” Demmelhuber adds. This means sentiment among the self-employed developed counter to the overall economy in October, which saw an improved business climate for the first time since April. “One in six self-employed people surveyed currently feel their economic survival is threatened,” Demmelhuber says. This proportion is more than twice as high as in the economy as a whole.

A look at the sectors shows that the improvement in the business climate from the previous month did not continue in retail. With the exception of IT service providers and creative professionals, the climate indicator fell in all service industries in October.
 
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.

*Balances, not seasonally adjusted