A possible economic upswing around the new year has not yet reached the German middle‑sector businesses. Data released by the software house Datev, which was published in the Frankfurter Allgemeine Zeitung, shows that small and medium‑sized enterprises (SMEs) reported a 1.6 % decline in sales in November compared with the same month last year. The revenue index is, for the first time since June, at its lowest level.
Over the past year, total revenues for the mid‑size sector have barely moved, slipping slightly on average. The sharply negative sales figure in December casts doubt on the idea that Germany is poised for a quick turnaround to better economic conditions. Earlier, rising orders for industry and growing production in manufacturing had strengthened that expectation.
Datev’s SME indicator now signals that the outlook remains far from rosy. The indicator is based on anonymised turnover data from SMEs-an early, hard‑data snapshot of year‑end economic health. It reveals that sales declines were seen in every sector except construction, and that the retail sector missed the traditional Christmas boom. “2025 was a lost year for the mid‑sized firms” said Robert Mayr, chairman of the Datev cooperative. Very small and small firms were hit hardest by ongoing consumer hesitation, rising costs, and structural change.
The weak performance of SMEs also reflects employment trends. The relevant Datev sub‑index fell 0.4 % in seasonally adjusted terms versus the previous month. Job losses were concentrated in manufacturing and hospitality. The wage‑growth indicator for December shows persistent cost pressure for SMEs; wages and salaries rose 3.8 % year‑on‑year, outpacing inflation.
