The business climate for Germany’s self-employed deteriorated again in September. The “Jimdo-ifo Business Climate Index for the Self-Employed” fell to -21.4 points*, down from -18.4 points* in August, thus approaching the long-term low at the start of the year. The self-employed were somewhat less negative about their current situation. However, the outlook for the coming months was decidedly gloomier. “The economic slump and the lack of new orders it entails is causing problems for the self-employed,” says ifo expert Katrin Demmelhuber.
One ray of hope is tourism and the hospitality industry, where business was slightly better than in the previous month. In contrast, the climate for IT service providers deteriorated and reached a long-term low.
Demand for loans in the third quarter of 2024 remained relatively low at 10.1% (9.8% in the second quarter). However, the solo self-employed and microenterprises reported that it was becoming increasingly difficult to obtain bank loans: 38.6% described the behavior of banks as restrictive, compared to 36.8% in the previous quarter.
The ifo Institute has been publishing the Jimdo-ifo Business Climate Index for solo self-employed persons and microenterprises (with fewer than nine employees) since August 2021. As in the composite index, all sectors of the economy are taken into account. However, its main focus is the service sector.
*Balances, not seasonally adjusted
Source: ifo Institute
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