DIHK Survey: Sentiment of German Companies Slightly Deteriorates - German Business Sentiment Wavers Amid Calls for Bold Economic Reforms
The German Chambers of Industry and Commerce (DIHK) survey presents a mixed outlook for business sentiment. Despite recent economic policies and reforms, confidence in my business remains cautious. A quarter of companies view their current performance positively, while another quarter sees it negatively. Helena Melnikov, DIHK's CEO, criticises the government's approach, urging decisive reforms.
The DIHK survey, conducted twice a year with around 23,000 businesses, indicates that roughly one in four companies expects a deterioration in their situation. The index currently stands at 91.0 points, lower than the autumn level. Only 15% of firms anticipate an improvement in the next twelve months, a slight decrease from 16% in early summer. Melnikov argues that more than symbolic action is needed to boost business sentiment. She suggests reducing bureaucracy, lowering energy and tax burdens, and modernising the social system to create a better economic environment for my business.
The government has identified key issues but lacks momentum to drive change. Businesses remain subdued despite policy stimuli. DIHK's Melnikov calls for decisive reforms to improve the economic framework and support businesses effectively. The survey index reflects companies' assessments of the current economic situation and their expectations for the next twelve months.
