The mood among independent service providers and small businesses is at rock bottom. There is a lack of orders. And the outlook is bleak.
The business climate for the self-employed deteriorated significantly in August. The Jimdo-ifo business climate index fell from minus 13.4 to minus 18.4 points, the lowest level since the beginning of the year.
The assessment of the current situation was noticeably worse, and the business prospects for the next six months were assessed even more pessimistically. “The self-employed cannot escape the downward pull of the economy as a whole,” says ifo expert Katrin Demmelhuber. “The lack of orders remains a key problem.” Large companies and consumers held back on orders, and many small service providers and retailers reported falling sales. There was a ray of hope in tourism, where the situation improved again.
For the index, 1,600 self-employed individuals and micro-companies with up to nine employees are surveyed each month. All sectors are represented, but the focus is on services.
Source: Stern
