Saxon companies in low spirits: economic survey by the IHK shows bleak business prospects.

Saxon companies in low spirits: economic survey by the IHK shows bleak business prospects.

According to a report by www.tag24.de, Saxon companies are in a difficult phase. The economic survey by the Saxon Chamber of Industry and Commerce shows that the business climate index has fallen for the third time in a row and has currently reached its worst value in 14 years. Business expectations are gloomy and a majority of entrepreneurs are negative.

The effects of the current crisis are overlapping and creating a difficult situation for companies. Increases in energy and labor costs, falling domestic demand, a shortage of skilled workers and economic conditions are putting pressure on companies. Investments are seen as a big risk, and many entrepreneurs are dissatisfied with the communication from the government in Berlin.

Despite this negative mood, 54 percent of the companies surveyed still rate their financial situation as “unproblematic”, even if this value has fallen compared to the beginning of 2022. The government should therefore take appropriate measures to boost business confidence and support businesses.

These developments could have negative effects on the Saxon market and the financial sector. Companies could cut back on investments, which could lead to a further slowdown in the economy. Such stagnation could also lead to job losses and a decline in business activity. The government must therefore develop effective strategies to support the economy and restore business confidence.