Business sentiment among solo self-employed and micro-enterprises in Germany improved for a fourth consecutive month in August, according to the Munich-based Ifo Institute, which announced the results Wednesday.
The Ifo barometer for business climate rose from minus 22.6 points in July to minus 19.7, the institute said. The improvement was largely driven by less pessimistic forward expectations. "This time, the self-employed also assessed their current business less negatively," said Ifo expert Katrin Demmelhuber. "Despite the positive signals, the situation remains challenging."
Self-employed respondents reported slightly greater confidence in forecasting their future business trajectory. In August, 32.2% of those surveyed said assessing their future development was difficult, down from 38.8% during the peak of Middle East crisis escalation in April. "When crises intensify, uncertainty about their own future grows among the self-employed," Demmelhuber said. "They depend on stable framework conditions and planning security."
By sector, the service-provider segment saw some improvement. IT service companies and business consultancies expressed notably more optimism. The hospitality industry and creative sectors, however, continued to face difficult conditions. Retail showed signs of easing, though the business climate remained at a low level.
The Ifo Institute conducts the survey monthly in cooperation with the software company Jimdo, polling approximately 1,800 solo self-employed individuals and micro-enterprises with up to nine employees.
Germany's broader economy has grown for three consecutive months, leading leading economic research institutes to raise their growth forecasts. They now project GDP expansion of up to 1.4%, compared with the federal government's previous estimate of only 0.5%.
