Ostwürttemberg: Companies head for dark times!

Ostwürttemberg: Companies head for dark times!

The economic mood is clouded in the booming region of East Württemberg! The current business layer dicator fell to 9.1 by terrifying 3.2 points, but remains in the positive area. An even darker picture is evident in the business expectations: The indicator now has a clear negative trend with a value of -11.0. While the labor market appears robust at first glance, the willingness to hire the companies and make dwindling investments listen!

The survey of the IHK shows an alarming picture: Almost every third company considers its business situation to be "good", while half only evaluates "satisfactory". Nevertheless, only 20 percent believe in a timely improvement in business over the next twelve months - a decline of 25 percent before! At the same time, almost 33 percent get a deterioration - an increase of 13 %! These dark prospects drive many companies to reduce their workforce. The general manager of the IHK, Thilo Rentschler, calls for immediate structural reforms to eliminate the causes of the crises.

economic risks increase!

The companies tend to look more pessimistic into the future. Around 40 percent see economic policy risks, which means an increase of 10 percent compared to early summer. The domestic demand remains number one with more than 70 percent. While the problems due to increasing labor costs and a shortage of skilled workers decrease a little, many companies fear geopolitical tensions and uncertainties on the world stage. In investments, trust drops drastically: Only 54 percent of companies expect rising or constant domestic investments, a significant decrease of 9 percent ...

This is a call to attention! Despite a currently stable appearance, the labor market could pass into a critical phase. Companies have to adapt and develop strategies to meet the challenges of the next few months!

Source: IHK Ostwürttemberg