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Middle-class sentiment at its lowest point: recession threatens the economy
German economic sentiment among medium-sized businesses is falling to its lowest level in 15 years. Find out why companies are so pessimistic and what impact this has on the economy. #Economy #Financial Crisis #Credit Reform #Willingness to Invest
Middle-class sentiment at its lowest point: recession threatens the economy
The mood among German medium-sized businesses is at a historic low, as shown by the Creditreform mood barometer. The business climate index for assessing the economic situation was minus 1.4 points in the spring. This development marks the worst mood since the financial crisis 15 years ago. According to the survey, which included around 1,250 small and medium-sized companies, many companies are extremely uncertain about the future.
With regard to business expectations, there is increasing pessimism compared to the previous year. Expectations are at their lowest level in a decade. The weak construction sector and declining industrial production have significantly affected the business development of medium-sized companies. In addition to these factors, the conflicts in Ukraine and the Middle East as well as current economic policy also contribute to uncertainty.
Companies' willingness to invest has declined sharply, mainly due to high financing costs and an unfavorable economic outlook. Only 43.9 percent of the companies surveyed are currently planning investments, compared to 52.8 percent in the previous year. This development is seen as a serious burden on the competitiveness of the business landscape in Germany. Other economic research institutes such as the renowned IW confirm this pessimistic assessment in their surveys.