ADVERTISING
Business climate index remains below the growth threshold at 90 points
The economy of southern Hesse continues to struggle to recover from recession. While business is somewhat better than in autumn 2025, companies remain cautious. This is the result of the latest economic survey conducted by the Darmstadt Rhine-Main-Neckar Chamber of Industry and Commerce, for which around 900 companies were interviewed.
The manufacturing sector, particularly industry, is showing a slight upward trend. Retailers, on the other hand, are disappointed with Christmas sales and are looking to the future with concern. Assessments in the service sector are mixed.
Business climate index remains below 100 points
The Chamber of Industry and Commerce (IHK) business climate index, which summarizes the current situation and expectations, has risen by two points compared to autumn 2025, currently standing at 90 points. This means it remains well below the growth threshold of 100 points.
Nineteen percent of the surveyed companies rate their situation as good, 55 percent as satisfactory, and 26 percent as poor. The balance between positive and negative assessments of the situation improves slightly, but at minus seven percentage points remains in negative territory.
Expectations for the coming months are also subdued: only twelve percent anticipate an improvement in the business situation, 62 percent expect it to remain stable, and 26 percent fear a deterioration. The balance of expectations is minus 14 percentage points.
Investments and staffing are planned cautiously
Investment appetite remains low. 21 percent of companies plan to increase investments, while 36 percent foresee cuts. Many businesses are also hesitant to hire new staff.
Companies continue to cite domestic demand (67 percent), the quality of economic policy (62 percent), and the development of labor costs (59 percent) as the greatest risks. According to the Chamber of Industry and Commerce (IHK), the increased labor costs, partly due to adjustments to the minimum wage, are putting many businesses under particular pressure.
Further information and the complete economic report for the beginning of the year
can be found www.ihk.de.
(DARMSTADT – RED/IHK)
