– IHK current economic survey results from IHK there. It appears that IHK companies from the city and region of Forchheim seem to be more affected by the current challenging environment.
Therefore, the current business situation is slightly negatively evaluated at equilibrium, unlike other sub-areas of the room area. The outlook for future business is also declining and, in general, slipping deeper into negative territory. Forchheim’s Economic Climate Index dropped by two points and is now at 93. “The current business situation in our companies remains generally stable. On the other hand, many companies are concerned about the coming months. Michael Wasner, President of IHK, who is also Chairman of the Forchheim IHK Committee, says the conditions of the framework are difficult, especially in business international, and the uncertainties are high.
In general, the current business situation in the Forchheim Economic Zone is almost balanced: 22% of the companies surveyed say their business situation is good, and 25% are bad. 53 percent of those surveyed rated the operational situation as satisfactory. The main reason for this somewhat worse rating compared to the New Year’s survey is the decrease in sales in the domestic market. More companies surveyed report weak sales development than those companies that are able to spread growth.
In foreign markets, on the other hand, the development of corporate sales remains balanced. Above all, consumers’ reluctance to buy is slowing down domestic business. However, the consequences of the war in Ukraine and the epidemic also cause uncertainty in international business. “In light of the challenges, the assessment of the situation is surprisingly robust,” Wassner said.
Cautious future prospects
Merchants and businesses are currently experiencing a variety of difficulties. In addition to the effects of war, rising energy costs, and restrictions imposed by the pandemic, a growing shortage of skilled labor remains a major problem. Added to this are inflationary tendencies and rising interest rates, which make investments more expensive. Therefore, the view on the next twelve months is still somewhat cautious. Only 22 percent of companies surveyed expect the business situation to improve, while 33 percent assume it will deteriorate. The remaining 45 percent do not expect any major changes.
Thus the balance remains clear in the negative territory and roughly corresponds to the result of the New Year’s survey. “Many factors cannot be affected internally. No one knows what the next few weeks will bring. This makes planning difficult and ensures that we act with greater caution. Everyone involved in economic life, businesses and consumers hope that general conditions will quickly stabilize.” , warns the head of the IHK.
Investments should go down
This is also shown by the IHK survey: not only the outlook for business development in the city and county of Forsheim is very poor, but also the planning for investments and staff development. In the next few months, more entrepreneurs expect a fall than an increase in investments. And when it comes to hiring planning, more companies expect layoffs than new hires. “But it is also true that some sectors and companies can detach themselves from the general trend and post very good numbers. Therefore, there can be significant investments and an increase in the number of employees in individual companies,” Wasner says.
In general, the IHK Economic Survey gives a different picture of the economic situation in the sub-regions. “In the current survey, the indicators in the eight IHK committees cover a wide range and range from 86 to 120 points. This shows how uneven the current challenges affecting the local economy are,” said IHK Economics Officer Malte Tiedemann.