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Companies in southern Hesse see little upturn – the mood remains tense
Darmstadt. Despite billions of euros in federal government aid programs, the economic upswing in southern Hesse has failed to materialize. This is shown by the latest business climate survey conducted by the Darmstadt Rhine-Main-Neckar Chamber of Industry and Commerce (IHK) , for which around 900 companies were surveyed. Many businesses rate their situation worse than in early summer – and express disappointment with the "autumn of reforms."
Business climate index at a low level
The (IHK) business climate index currently stands at 88 points – the same level as at the end of the previous federal government's term. Only 20 percent of the surveyed companies rate their situation as good, while 30 percent Industry and retail are particularly affected , with declining orders and sales.
“The effects of the special fund that was approved have not yet reached the companies. The global economic environment, for example due to new US tariffs, is further exacerbating the situation,” explains Robert Lippmann , CEO of the Darmstadt Chamber of Industry and Commerce. Future expectations also remain bleak: only twelve percent anticipate an improvement, while 27 percent fear a further deterioration.
Companies are holding back on investments
Many businesses are reacting to the uncertain situation with caution: only 26 percent are planning increased investments, while 37 percent intend to spend less. Caution also prevails in personnel planning. "Some lack confidence, others lack the money," says Peter Kühnl, economic expert at the Chamber of Industry and Commerce .
Lippmann calls for "more courage to reform"
Companies in southern Hesse cite weak domestic demand (67 percent) , followed by economic policy (65 percent) and rising labor costs (57 percent) . The planned minimum wage increases are putting many businesses under particular pressure.
“Companies expected more from the government’s new economic policy,” said Lippmann. “Businesses need fewer announcements and more reliable, growth-oriented framework conditions – especially regarding reducing bureaucracy, securing skilled workers, energy supply and infrastructure.”
"The location cannot afford a lack of courage."
Lippmann cites the supply chain law , describing its weakening as a step in the right direction. Now, the government must follow up with further reforms. "Our business location can no longer afford a lack of courage," emphasizes the Chamber of Industry and Commerce's CEO.
The complete economic report for autumn 2025 is available online at www.ihk.de/darmstadt (search number 13442 ) or directly at ihk.de/darmstadt/produktmarken/standortpolitik/konjunktur/konjunkturbericht-2530242
