German economic data highlights struggles of self-employed and small businesses, as the Ifo-Institut reported a sharp decline in the business climate index for solo entrepreneurs and small enterprises, with a reading of -24.9 points in January, a new low for the year. The index, which measures the sentiment of small business owners, has been in a downward trend since August 2021, with the majority of self-employed individuals, 50.5 percent, citing a lack of orders in January, a significant increase from the 48.5 percent in October. This trend is particularly concerning, as the self-employed sector is more severely affected, with 50.5 percent of respondents reporting a shortage of orders, compared to 40.2 percent in the overall economy. The expert at the Ifo-Institut, Katrin Demmelhuber, emphasized that the economic drought for the self-employed has intensified, with the lack of orders remaining a central problem. The assessment of ongoing business activities has sharply declined and while expectations have improved slightly, they remain at a very low level. The institute’s index, which has been tracking the business climate since August 2021, shows a decline across all sectors, with a focus on the service sector.
50% Suffer from Lack of Work Orders
