The business climate for self-employed individuals and small businesses improved for the fourth consecutive month in August. According to the “Jimdo-Ifo Business Climate Index,” the score rose from -22.6 points in July to -19.7 points in August. Ifo expert Katrin Demmelhuber noted that the index was recently supported primarily by less pessimistic expectations. However, this time the self-employed also tended to rate their ongoing operations less negatively. Despite these positive signs, she warned that the overall situation remains challenging.
Currently, self-employed individuals report slightly fewer difficulties when trying to forecast their future business development. In August, 32.2 percent of respondents said this was difficult for them, a noticeable drop from 38.8 percent recorded in April during the intensification of the Middle East crisis. Demmelhuber added that uncertainty about their future tends to grow among the self-employed when crises escalate, stressing that they rely heavily on stable conditions and planning certainty.
The mood improved somewhat among service providers, who reported significantly less dissatisfaction with their current situation. Furthermore, these small businesses revised their business and revenue forecasts upward in August. On an industry level, IT service providers and corporate consulting firms expressed greater confidence compared to previous months. Nonetheless, the situation remains difficult in the catering/hospitality and creative sectors.
In the retail sector, the business climate index showed an increase, although it remained at a low level. This rise was attributed to better-performing current businesses, while skepticism regarding expectations persisted.
