The business climate among small and medium-sized enterprises improved in February from 6.1 points to 16.4 balance points. In its 100th issue the KfW-ifo SME barometer showed the third highest increase in the business climate since the beginning of the series.
The impulses are emanating from both components. Business expectations are virtually exploding after two strong increases in the previous months and currently have improved by 8.8 points to 12.2 balance points.
Only one time since German reunification has such a high increase in expectation been achieved. In contrast, the sound improvement in the assessments of the current situation seems almost modest (+3.4 points to 20.3 balance points).
"The very clear improvement in business climate and expectations in the SME sector is pleasing and confirms our positive forecast for the economy. Already in the first quarter the German economy will grow soundly again," said Dr Jörg Zeuner, Chief Economist of KfW. At the same time, we need to maintain a grip on reality. Very strong increases in expectations over a short period harbour some potential for setbacks if disappointments arise.
"The enterprises will have to realise that the recession in the Euro area will continue to have a braking effect for some time and the policy mix in the reforming countries does not allow for very great expectations for the European economy. In addition, the difficult election results in Italy bring up new questions."
Along with the SMEs, in February large enterprises also assessed their business situation (+3.3 points to 12.3 balance points) and their expectations (+5.1 points to 4.8 balance points) more favourably than in the previous month. Their business climate improved by 4.2 points to 8.8 balance points. By itself this is a good result but fades somewhat when measured against the vigorous improvement in sentiment in SMEs and which again widens the gap between both size categories after it had recently closed somewhat.
The current good mood, as the KfW-ifo SME barometer finds, is based on a broad foundation. Besides the large retailers, which are experiencing volatility due to the mood, across all sectors the climate has improved. The increases are particularly strong in the manufacturing industry, wholesale trade and construction, which are key to economic growth. The SME business climate in the building industry climbed to 32.5 balance points, thereby reaching a new all-time high that even exceeded the very good mood at the time of the construction boom after reunification.
A detailed analysis with data tables and charts on the current KfW-ifo SME barometer are available under www.kfw.de/mittelstandsbarometer.Contact:
Christine Volk | presseportal
How Strong Brands Translate into Money
15.11.2016 | Kühne Logistics University - Wissenschaftliche Hochschule für Logistik und Unternehmensführung
Demographic change depresses tax revenues
04.11.2016 | Fraunhofer-Institut für Angewandte Informationstechnik FIT
Have you ever wondered how you see the world? Vision is about photons of light, which are packets of energy, interacting with the atoms or molecules in what...
A multi-institutional research collaboration has created a novel approach for fabricating three-dimensional micro-optics through the shape-defined formation of porous silicon (PSi), with broad impacts in integrated optoelectronics, imaging, and photovoltaics.
Working with colleagues at Stanford and The Dow Chemical Company, researchers at the University of Illinois at Urbana-Champaign fabricated 3-D birefringent...
In experiments with magnetic atoms conducted at extremely low temperatures, scientists have demonstrated a unique phase of matter: The atoms form a new type of quantum liquid or quantum droplet state. These so called quantum droplets may preserve their form in absence of external confinement because of quantum effects. The joint team of experimental physicists from Innsbruck and theoretical physicists from Hannover report on their findings in the journal Physical Review X.
“Our Quantum droplets are in the gas phase but they still drop like a rock,” explains experimental physicist Francesca Ferlaino when talking about the...
The Max Planck Institute for Physics (MPP) is opening up a new research field. A workshop from November 21 - 22, 2016 will mark the start of activities for an innovative axion experiment. Axions are still only purely hypothetical particles. Their detection could solve two fundamental problems in particle physics: What dark matter consists of and why it has not yet been possible to directly observe a CP violation for the strong interaction.
The “MADMAX” project is the MPP’s commitment to axion research. Axions are so far only a theoretical prediction and are difficult to detect: on the one hand,...
Broadband rotational spectroscopy unravels structural reshaping of isolated molecules in the gas phase to accommodate water
In two recent publications in the Journal of Chemical Physics and in the Journal of Physical Chemistry Letters, researchers around Melanie Schnell from the Max...
16.11.2016 | Event News
01.11.2016 | Event News
14.10.2016 | Event News
05.12.2016 | Power and Electrical Engineering
05.12.2016 | Materials Sciences
05.12.2016 | Power and Electrical Engineering