According to Die Welt, a popular German periodical, most businesses in Germany are sharing poor morale for the near future. German companies are alarmed by soaring gas prices.
Die Welt reckons that the German manufacturing sector has never been overwhelmed by such doom and gloom. The latest poll conducted by the Association of German Chambers of Commerce and Industry revealed that executives of 52% of companies are braced for significant deterioration in business conditions in 12 months ahead. Remarkably, only 8% of companies expressed optimism in the hope that the economic conditions could improve.
Dr. Martin Wansleben, the CEO of the Association of German Chambers of Industry and Commerce, said that the latest survey reflected the lowest readings since 1985. The expert pointed out that German companies did not lose optimism even during the COVID-19 pandemic and the financial crisis of 2008. More and more German entrepreneurs fear that economic conditions could reach rock bottom in the near future, Dr. Wansleben noted.
The reason for the mounting gloomy mood is sky-high electricity and gas prices that force German companies to relocate their production facilities to other countries. Another cause for concern reported by 51% of companies is an increase in wages. Analysts at Die Welt say that firms have to raise the minimum wage in Germany and comply with the requirements of employees to adjust wages to high inflation.
For the time being, 52% of German companies are worried about a considerable drop in domestic demand. Earlier, this problem was highlighted by 40% of firms. Nowadays, it is making a dent in the business activity of almost half of German companies, Die Welt concludes.
