According to a DIHK survey, the majority of German companies are passing on the cost increases resulting from higher energy and raw material prices to their customers.
According to a DIHK survey, the majority of German companies are passing on the cost increases resulting from higher energy and raw material prices to their customers.
About three quarters of the companies said they wanted to raise prices (34 percent) or had already done so (39 percent), said the Association of German Chambers of Industry and Commerce (DIHK) on Tuesday when it presented its economic survey. According to a survey of around 25,000 companies from all sectors, 15 percent could not pass on their cost increases and 6 percent had not yet decided.
According to this, 36 percent of the companies rated their business situation in early summer as “good”. That is 3 points less than in the survey at the beginning of the year. However, the proportion of companies that reported a poor business situation also fell to 17 percent. The balance of good and bad assessments of the situation has improved slightly and is slightly below the long-term average.
Energy security most important issue
In view of the Russian attack on Ukraine and the lockdown in China, business expectations collapsed in almost all areas, especially in the energy-intensive branches of industry. In the risk assessment, rising energy and raw material prices climbed to a high (78 after 64 percent). “They are the most serious challenges in all industries,” it said.
Across all sectors, almost a fifth of companies are optimistic about the prospects for the next twelve months. At the beginning of the year it was almost a quarter. On the other hand, a third assume worse business. Before that it was 19 percent. For tourism-related service providers, on the other hand, the elimination of corona restrictions led to significantly more optimistic prospects.
The DIHK had recently revised its economic forecast downwards again. For this year he expects economic growth of around 1.5 percent, as was announced last week. In mid-February, before the start of the war, the DIHK had forecast 3 percent – but this forecast had also been corrected downwards from 3.6 percent.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
