Lower Saxony on the rise? Survey shows mixed feelings about the economy!

Lower Saxony on the rise? Survey shows mixed feelings about the economy!

According to the current survey by the Lower Saxony Chamber of Commerce and Industry (IHKN), the Lower Saxony economy is in a tense state. Despite initial signs of recovery in the summer of 2025, many companies are hesitant in their investment decisions. Many companies that currently assess a mixed business situation took part in the survey, which recorded the economic situation of almost 2,400 companies. Around 20% of those surveyed see their situation as good, while around 25% report a bad situation. Buten and inland reports that the majority of companies expect business to remain the same; only 13% have hopes for an improvement.

The IHKN general manager Maike Bielfeldt calls for more reliability from politicians. Although the federal government has implemented initial reforms such as the industrial electricity price, many companies, especially in the retail and service sectors, feel that they are not sufficiently taken into account. This uncertainty is seen as damaging to the entire economy. Numerous companies are holding back their capital because announcements about reducing bureaucracy and digitization have often not been implemented.

Industry overview

In the construction industry, interest rate cuts are starting to have positive effects, particularly in civil engineering and increasingly in residential construction. In wholesale, however, restraint remains prevalent. Uncertainties about possible tariffs have a negative impact on foreign business. Around 33% of wholesale companies expect declines, with the mechanical engineering, chemical and electrical engineering sectors being particularly affected. n-tv emphasizes that the retail sector is experiencing stabilization in the food and beverage sector. While pharmacies and medical supply stores expect increasing sales, almost 50% of restaurants report declining income.

In the hospitality industry, hotels and guesthouses report stable demand. Nevertheless, the planned sales tax reduction on food is viewed as not very effective. There is positive credit business in the financial sector, while expectations in temporary employment have improved. The service industry is particularly optimistic, expecting increasing sales and feeling the best in four years.

Outlook and challenges

Despite these positive aspects, 56% of service providers see the economic policy framework as the greatest risk and 51% see the shortage of skilled workers. Bielfeldt also emphasizes the need for infrastructure investments and the urgency of real structural reforms in social security. In order to encourage companies to make bold investments, the chamber is calling for an economic policy that goes beyond announcements and offers sustainable solutions.

Overall, the situation in Lower Saxony's economy remains tense, but there are hopes for more stable development if the political and economic conditions improve.