Emmanuel Thomas, DPA, Saturday, June 24, 2023
BERLIN – Despite the recent economic slump, confidence has returned among small and medium-sized enterprises (SMEs) in Germany, a survey released on Saturday has shown.
After the slump in business expectations in the autumn, on balance the majority of SMEs are now optimistic again about their business in the next six months, the DZ Bank and the Federal Association of German Cooperative Banks (BVR) concluded after their latest joint SME survey of some 1,000 participants.
One reason for the improved mood, according to the analysis, is that electricity and gas have recently become much less expensive than last year, a result largely of government price caps. The current business situation of German SMEs as a whole is “even better than the long-term average,” according to the analysis.
“Compared to our autumn survey, the cost burden is currently causing SMEs somewhat less concern. However, this is by no means a reason to sound the all-clear,” the economists wrote.
Almost three quarters, or 73% of the respondents still consider energy costs and a good two thirds, or 67%, raw material and material costs to be a problem.
“The increased cost level … continues to put pressure on margins. In addition, competitiveness is declining vis-à-vis competitors from countries with lower energy and personnel costs, but also vis-à-vis German groups that manufacture abroad,” the analysis states.
According to the data, “a considerable number of medium-sized companies” from Germany have reduced their own engagement abroad since the autumn.
Whereas six months ago 50% of the firms were still active abroad, the figure is currently 45%. Especially smaller companies with annual sales of up to €5 million ($5.46 million) have reduced their business relations abroad.
