Business sentiment among self-employed individuals and small businesses in Germany has risen again in June. The Jimdo-Ifo Business Climate Index climbed from -19.0 points in May to -15.7 points, according to an announcement by the Ifo Institute on Tuesday.
The most significant shift was a decrease in pessimistic expectations. Evaluations of current business conditions also became less critical. “The situation does not yet allow for optimism, but there are signs of hope for a gradual recovery among the self-employed” said Ifo expert Katrin Demmelhuber.
Currently, the self-employed are experiencing fewer difficulties in assessing their future business development. In June, 30.5% of respondents indicated that this proved challenging, down from 32.7% in May and 36.5% in April. This marks a consecutive decrease in uncertainty, although it remains higher than within the broader economy, where the figure stood at 20.2% in June. “Self-employed individuals now need clear framework conditions and planning certainty” Demmelhuber stated.
The improvement in business sentiment was particularly noticeable within the service sector. For the first time this year, self-employed individuals and small businesses within the service sector positively assessed their current situation, revising their business and sales expectations upwards. Across industries, a palpable improvement was observed in the travel sector, among creative professionals and within business consulting firms.
