Business sentiment among self-employed individuals and small businesses in Germany has risen again in June, according to the latest data released by the Ifo Institute. The Jimdo-Ifo Business Climate Index increased from -19.0 points in May to -15.7 points.
The primary driver of this improvement was a lessening of pessimistic expectations, but current business conditions were also assessed with a less critical eye. “The situation doesn’t yet allow for optimism, but there are signs of hope for a gradual recovery among the self-employed” stated Ifo expert Katrin Demmelhuber.
A notable trend observed is a decrease in the difficulty self-employed individuals experience when forecasting future business development. In June, 30.5% of respondents indicated difficulty in this regard, down from 32.7% in May and 36.5% in April. This marks a second consecutive month of declining uncertainty, although it remains higher than the level seen across the broader economy, which stood at 20.2% in June.
The improvement in business climate was particularly pronounced among service providers. For the first time this year, self-employed individuals and small businesses in this sector evaluated their current situation positively and revised their business and sales expectations upward. Specific sectors experiencing marked improvements include the travel industry, creative agencies and management consulting firms. According to Demmelhuber, “Self-employed individuals now need clear frameworks and planning certainty”.