Both the expectations for the coming six months and the assessments of the current situation are unfavourable. While the former have been in negative territory for some time, the assessment of the current business situation has fallen below the neutrality threshold for the first time since November 2020 (-7.5 points). Only one in five companies still rates the business situation as good. Suppliers who expect an improvement in the next six months are the exception: 7 percent are cautiously optimistic, while just under half see economic difficulties ahead for the industry.
While the past few years were marked by problems related to the Corona pandemic, supply chains and the war in Ukraine, as well as any catch-up effects, the weakening of Germany as a business location is becoming apparent due to a structural crisis. Where short-term shocks could still be absorbed "by agile entrepreneurship and state support", the ArGeZ now sees the situation as "threatening to the substance". The industrial SME sector often does not have the possibility to avoid poor regulatory competitive conditions.
While the past few years were marked by problems related to the Corona pandemic, supply chains and the war in Ukraine, as well as any catch-up effects, the weakening of Germany as a business location is becoming apparent due to a structural crisis. Where short-term shocks could still be absorbed "by agile entrepreneurship and state support", the ArGeZ now sees the situation as "threatening to the substance". The industrial SME sector often does not have the possibility to avoid poor regulatory competitive conditions.
