Business Advisors Weather Economic Slump

Business Advisors Weather Economic Slump

Despite a sluggish German economy, the consulting, legal and auditing sectors are demonstrating remarkable resilience and even optimism, according to a special analysis of the Ifo Business Climate Index published in Handelsblatt. While broader economic indicators point to stagnation, a significant majority of firms within these key professional services are reporting satisfaction with their performance throughout 2025, with a quarter anticipating further improvement in the coming year – a stark contrast to the prevailing economic gloom.

Ifo researcher Klaus Wohlrabe characterized the sector’s performance as “remarkably robust” noting that pessimistic sentiment never gained critical momentum. This divergence highlights a troubling disconnect: While industries across Germany grapple with declining output and investment, these specialized professions appear insulated, profiting even from economic uncertainty. This raises questions about the equity of recovery and the potential for widening inequality as certain sectors demonstrably outperform others.

A significant driver of this outperformance is the accelerated adoption of artificial intelligence. Nearly 70% of firms have already integrated AI into their daily operations, with another 10% planning to do so, showcasing a proactive approach to technological advancement typically absent in broader industrial segments. However, this digital transformation isn’t without potential complications. A concerning 25% of AI users anticipate job losses as a direct consequence, estimating an average reduction of 12% of their workforce. While companies report a considerable skills shortage – with over a third actively seeking new hires – the looming threat of automation presents a complex challenge, potentially exacerbating existing labor market anxieties.

The data underscores a growing political imperative: to address the structural vulnerabilities of the German economy while acknowledging the divergent fortunes of its various sectors. Policymakers must consider measures to mitigate the potential negative consequences of AI-driven job displacement and proactively support reskilling initiatives to ensure a more equitable distribution of technological benefits. The continued success of these professional services, while a testament to their adaptability, also serves as a potential warning sign of broader economic imbalances that require urgent attention.