A Chamber of Industry and Commerce (IHK) business survey of around 900 companies shows improved business, but continued weak investment readiness and cautious personnel planning
The economic situation in southern Hesse improved in autumn 2026. After a prolonged period of weakness, companies in the industrial, retail, and service sectors are reporting better business again. However, a sustained upswing is not yet in sight. This is shown by the latest economic survey conducted by the Darmstadt Rhine-Main-Neckar Chamber of Industry and Commerce (IHK), in which around 900 companies from the region participated.
The Chamber of Industry and Commerce (IHK) business climate index rose by nine points compared to early summer, currently standing at 91 points. This keeps it below the 100-point mark, which signifies a balanced assessment of the current business situation and expectations.
“The funds from the special funds for infrastructure and climate protection are increasingly reaching the economy,” explains Robert Lippmann, CEO of the Chamber of Industry and Commerce. At the same time, companies still lack a reliable long-term growth perspective.
Business situation improves
In the current survey, 23 percent of companies rate their business situation as good. 47 percent describe it as satisfactory, while 30 percent report a poor business situation.
This represents an improvement compared to early summer. The balance of positive and negative ratings rose by seven percentage points to minus seven.
A recovery is particularly evident in the industrial and service sectors.
“Things are going better for service providers and industry than recently,” says Dr. Peter Kühnl, economic expert at the Darmstadt Chamber of Industry and Commerce. Industry, in particular, is benefiting from public investments linked to special funds.
Companies remain skeptical
Despite the improved business situation, many companies continue to look ahead to the coming months with concern.
Only 13 percent of the surveyed businesses expect an improvement in their economic situation. 63 percent anticipate conditions will remain largely unchanged. A further 24 percent fear a deterioration.
Although the balance of business expectations improved by eleven percentage points, at minus eleven it remains in negative territory.
“The slight improvement in business expectations does not represent a trend reversal. There are still too many location risks that are weighing on companies’ future expectations,” explains Kühnl.
Energy costs and political framework conditions are a burden
Companies cite economic policy framework conditions and high energy costs as the greatest risks to further economic development. Both factors are mentioned by 66 percent of respondents.
In terms of economic policy conditions, this corresponds to an increase of two percentage points compared to early summer. Energy costs are even more frequently assessed as a risk, four percentage points more often.
In this context, the Chamber of Industry and Commerce (IHK) points to increased oil and gas prices as a result of the war in Iran.
Businesses are also increasingly concerned about rising labor costs. 58 percent see this as an economic risk, six percentage points more than in early summer.
A further 57 percent of companies cite weak domestic demand as a burden. However, this factor has become somewhat less significant compared to the previous survey.
Investments and new hires are not taking place
The economic uncertainty is also affecting the investment plans of companies in southern Hesse.
While 26 percent of businesses intend to increase their investments, 32 percent are simultaneously planning cuts. The balance therefore remains negative.
The reluctance is particularly evident in personnel planning: only six percent of the companies surveyed intend to hire additional employees. In contrast, 26 percent expect to reduce staff.
According to the Chamber of Industry and Commerce (IHK), international business is also developing more weakly than recently. Sales in China and the USA, in particular, have declined.
The results show that the improved business situation has not yet led to widespread investment and employment growth.
The Chamber of Industry and Commerce (IHK) is calling for further economic reforms
In view of the subdued future prospects, the Darmstadt Chamber of Industry and Commerce (IHK Darmstadt) is calling for additional economic policy measures.
Chief Executive Robert Lippmann warns against considering the current recovery a sustainable upswing. According to the Chamber, it is largely driven by debt-financed government spending.
“The private engine of the economy – investments and domestic demand – is not yet getting going,” explains Lippmann.
Once the government's special funds are exhausted, the current growth impetus could also subside. The Chamber of Industry and Commerce (IHK) is therefore calling for, among other things, lower costs for businesses, less bureaucracy, and a modernization of infrastructure.
Lippmann welcomes the German government's intention to reduce the electricity tax to the European minimum. He believes such a measure could relieve the burden on companies and improve their international competitiveness.
Recovery without a sustainable upswing
The Darmstadt Chamber of Industry and Commerce's autumn survey paints a mixed picture of the South Hessian economy. While the current business situation has improved, expectations remain subdued.
According to the Chamber, high costs, economic policy uncertainties and a weak willingness to invest are currently preventing a sustainable economic recovery.
The full economic report for autumn 2026 is available on the website of the Darmstadt Chamber of Industry and Commerce
(DARMSTADT – RED/IHK)
