Medium-sized businesses on track: sales increasing, hope after two years!

Medium-sized businesses on track: sales increasing, hope after two years!

The downward trend in German medium-sized businesses appears to have finally been broken. According to the FAZ Current data shows that sales in small and medium-sized companies (SMEs) rose by 2.8 percent in May compared to the weak month of the previous year. The development is particularly pleasing in medium-sized companies, which even recorded an increase in sales of 6.4 percent. However, smaller companies with up to ten employees find it difficult to get off the ground - sales here have stagnated and the economic dry spell is not yet over.

Like that too DATEV medium-sized business index shows, there was an improvement in the general business climate - the index rose by 2.3 points to 93.5 points after seasonal and calendar adjustment. But a look back at the previous year's level shows that there was no significant growth here. The urgency of economic policy measures is implicitly expressed by Prof. Dr. Robert Mayr, CEO of DATEV eG, emphasizes.

Industries on the rise

A bright spot in the economic landscape are certain sectors such as agriculture, mining, financial services, and health and social care. A noticeable recovery can already be observed in these areas. The manufacturing and service sectors as well as the construction industry are also increasingly stabilizing.

However, there are still challenges, particularly in energy production and logistics, where there is still no clear growth trend. Regional sales growth also varies greatly. The districts of Straubing were able to shine with an impressive increase in sales of 10.6 percent and Frankfurt an der Oder with 7.1 percent. In contrast, the Emden district recorded a decline in sales of 14.1 percent, which is primarily due to uncertainties at the Volkswagen factory.

Positions and wages

Despite this slight upswing, many companies continue to struggle with challenges. The employment index fell to 100.7 points in April after seasonal and calendar adjustment, which means a decline of 1.3 percent compared to the same month last year. While the decline is only minimal for medium-sized companies, small companies are faced with significant losses.

With regard to wages, the wage index recorded an increase of 4.4 percent in April compared to the same month last year, which exceeds the general price development and is considered a relevant cost factor for companies. It remains to be seen how medium-sized companies will meet these challenges.

Overall, the situation in German medium-sized businesses remains tense, but with the current positive developments there is a small glimmer of hope for the coming months. The brightening of the Ifo business climate and the indications of slight growth, as can be observed in the purchasing managers survey for Germany, can be seen as good signs. Companies are challenged, but can look to the future with optimism. However, there is still some way to go on the road to economic recovery.