Economic Indicators Suggest Stabilization in German Small and Medium-Sized Enterprises
For the first time in two years, the decline in the German small and medium-sized enterprises (SMEs) appears to have broken, according to the Datev Mittelstandsindex for June, reported by the Frankfurt Allgemeine Zeitung. The index shows that the sales of SMEs have stopped shrinking, with a 2.8 percent increase in May, following a very weak previous year’s month. Economists at Datev comment that the signs are pointing towards stabilization and there is hope for an economic trend reversal.
While the overall economy is still struggling, some key sectors have already started to recover, according to Datev’s chief economist, Timm Bönke. The agricultural and mining sectors, as well as financial services and the healthcare and social services sectors, have already seen a trend reversal for the better. In the manufacturing and broad areas of the service sector, stabilization is more visible, along with the construction and retail sectors.
Regional disparities are also evident, with some areas showing strong sales growth in SMEs. In Germany, the leading regions are the districts of Straubing, Frankfurt an der Oder, Bremerhaven and the Emsland. In the first quarter of this year, the sales of SMEs in Straubing increased by 10.6 percent and in Frankfurt/Oder by 7.1 percent. The regional developments are often influenced by the arrival or expansion of large companies. For instance, the SMEs in Straubing benefited from the establishment of the service provider Amazon. On the other hand, the district of Emden, which saw a 14.1 percent decline in SME sales, was negatively affected by the uncertainty surrounding the Volkswagen plant in the area.