Economic optimism in Swabia: change in mood among companies!

Economic optimism in Swabia: change in mood among companies!

According to a current survey by the Swabian Chamber of Industry and Commerce, there is a positive change in sentiment in the Bavarian-Swabian economy. Companies are more optimistic about the future than at the beginning of the year, which is reflected in an increase in the IHK economic index by five points to 104 points. This is the first time in a year that the index is above the 100 point growth threshold. However, the index's 10-year average is still at 115 points, indicating room for further improvement.

The IHK President calls on the new federal government to show determination, unity and speed in order to improve the economic conditions. However, the greatest risk factor for economic development remains economic policy uncertainty, which is also perceived as burdensome by many companies across Germany.

Economic situation in Germany

The risks for the German economy are numerous: 62.8% of companies see domestic demand as the biggest threat, followed by the economic policy framework (55.8%). Many companies also perceive rising labor costs and energy prices as risk factors. The number of risks cited has increased by 35% since 2018, indicating an increasing sense of uncertainty.

Investment behavior

The pressure in industry is enormous: 36% of industrial companies describe the business situation as “poor” and only 7% expect an improvement in the next 12 months. Almost 50% plan to reduce domestic investment, while 38% want to cut jobs. In contrast, 27% of retailers show a cautious positive development and say that the situation is “good” or “better”.

In addition, many companies are shifting their investments abroad. 29% of internationally active companies are planning to expand locations abroad, while 34% are reducing their domestic investments. North America is becoming increasingly important as a destination for foreign investment, while the Eurozone remains the main destination (67.5%).

In summary, it can be said that the mood in the Bavarian-Swabian economy is improving, while the German economy as a whole is faced with significant challenges. The IHK presidents in both Swabia and Cologne are appealing to politicians to urgently take the necessary steps to stabilize the economy.

The Swabian Chamber of Industry and Commerce reports a cautious improvement in mood ( Mercury ), while the IHK Cologne highlights the difficult situation of many companies in Germany ( IHK Cologne ).