German businesses split as economic optimism fades despite reforms

Reforms fail to lift spirits: German companies stay cautious amid stagnant growth. Will the government’s plans finally turn the tide?

, and Administrator

2025 November 6 . 11:01 AM

1 min read

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DIHK Survey: Sentiment of German Companies Slightly Deteriorates - German businesses split as economic optimism fades despite reforms

A recent survey of 23,000 German businesses reveals a mixed economic outlook. Despite new policy stimuli and reforms, business sentiment remains subdued. Around one in four companies anticipate a worsening situation, while only 15% expect improvement. The DIHK survey, conducted twice yearly, reflects these assessments.

The DIHK survey indicates that businesses are divided in their views of the current economic situation. A quarter rate their performance positively, while another quarter view it negatively. This mirrors the index level of 91.0 points last autumn.

The government, led by Economic Affairs Minister Hubert Aiwanger, has identified key issues but has yet to gain significant momentum in addressing them. Businesses await concrete actions to boost economic development. Despite new policies, only 15% of firms now expect their situation to improve, down from 16% in early summer.

The DIHK survey paints a picture of cautious optimism and pessimism among German businesses. While a quarter view their current situation positively, another quarter is negative. The government's task is clear: it must translate its identified issues into concrete actions to improve the economic outlook and boost business confidence.