Medium-sized businesses in crisis: declining sales and falling employment!

Medium-sized businesses in crisis: declining sales and falling employment!

The current situation in German medium-sized businesses remains tense, as the DATEV medium-sized business index shows. Even in April 2023, the medium-sized economy did not record any growth, further increasing concerns about economic stability. Loud Traffic review Apparently the bottom has not yet been reached in this sector.

Compared to the previous month, the index rose by 2.3 points to 93.5 points after seasonal and calendar adjustment. However, if you look at the previous year's comparison, there was a decline of 0.9 percent, which underlines the ongoing challenges for many companies. In particular, in the beginning of the second quarter, medium-sized businesses reported a nominal decline in sales of 0.9 percent compared to the same month of the previous year after seasonal and calendar adjustments.

Decline in sales and wage development

Although sales declines were recorded in almost all sectors, they were weaker in April than in March. Professor Robert Mayr expressed concern about the high decline in sales, which is eating away at the substance of small and medium-sized companies. However, in this uncertain economic situation, wages are rising; According to the DATEV medium-sized business index, wages increased by 4.4 percent in April and are therefore above the general price development.

The wage and salary indices climb to an annual average of 114.2 points, with 100 representing the value for 2022. However, this increase comes against the backdrop of falling employment figures. The employment index fell to 100.7 points in April, a decline of 1.3 percent compared to the previous year.

Impact on employment

Small companies are particularly affected, with employment falling by 1.9 percent. Medium-sized companies, on the other hand, are only minimally affected. These developments raise questions about the long-term stability of small and medium-sized businesses and highlight the need for targeted support measures.

The concerns about small and medium-sized businesses are therefore justified, and a comprehensive strategy is required to sustainably improve the economic situation. Those interested can find further information on current trends and developments at Persoblogger.