Information
23.05.2016

Regional businesses in bullish mood

The mood in the regional economy remains positive. The businesses have been running well in the first quarter of 2016. Moreover, the prospects are brightening up. The regional economy continues moderate growth.

The regional economy is in good shape. The IHK Business Climate Index, that measures business situation and expectations, rose again compared to the beginning of the year and amounts currently to 133 points (+ 4 points). "This indicates prospects for sound economic growth this year", Dr. Peter Kulitz, President of the IHK Ulm (the Chamber of Commerce Ulm). About half of the companies rate their current business situation as “good”. Another 44 percent speak about a satisfactory business situation.
 
The once again improved business prospects at the beginning of the year pull slightly the expectations for the next twelve months. The majority of companies anticipate a further development at the current, good level. Almost three out of ten companies expect even more improvement.
 
The private consumption is and remains an important pillar. It benefits considerably from the excellent employment situation. The unemployment rate of 3.1 percent reached again the full employment level in April. Furthermore, the number of vacancies reported to the Federal Employment Office amounting to over 4.600 job offers, remains high.
 
The significant wage increases, low interest rates and the purchasing power gains due to lower energy prices are further private consumption drivers.  The impulses come also from the expenses incurred by the care and accommodation of a large number of refugees. Furthermore, the domestic investments by companies give impetus to the domestic demand.
 
Export business runs at a restrained level. The exports to China, Russia and Latin America stay weak. The demand from the eurozone rises moderately. In contrast, the businesses on the North American market run well. The companies are nevertheless assuming that the global economy will not weaken further.