DIHK sees 6 year high in the confidence of German SMEs

Confidence among small and medium-sized entities (SMEs) has not been as good in six years. This is one finding of the traditional economic report by the Association of German Chambers of Commerce (DIHK) for which in early summer this year about 20.000 associated companies were questioned.

The optimism is said to have been triggered by a world economy which has been booming for three years as well as by domestic demand which is gaining momentum. 32 percent of companies surveyed consider their business situation to be good and 51 percent as satisfactory. Only 17 percent think that their business is in a bad situation. Many companies even intend to hire new staff over the next months, even though under-proportionately to the increased business volume.
Spirits are running particularly high in companies from the toolmaking and mechanical engineering industries. Even the crisis-ridden construction industry sees kind of light at the horizon, even though experts think that the coming abolition of the private home premium hitherto paid by the state is causing a one-off effect in this sector.

Even markedly more confident are major enterprises employing more than 1000 staff. Here 45 percent consider the business situation to be good and 50 percent as satisfactory. Only 5 percent have a pessimistic view on the economic outlook. The reason for this more optimistic view according to the DIHK could be the fact that major enterprises do not have to fear high energy prices and the VAT increase as much as SMEs. The economic report is available free of charge in PDF format for download. GERMAN