Mood in Lower Saxony's economy remains gloomy

The economic mood in Lower Saxony barely brightened even in the summer. The European Football Championship could not change that. The expected boost for consumption failed to materialize.

, and Yaroslav Smith

2024 July 12 . 5:29 PM

2 min read

The mood in Lower Saxony's economy remains gloomy.

IHK-Survey - Mood in Lower Saxony's economy remains gloomy

Despite a decreasing inflation rate, the mood in Niedersachsen's economy remains gloomy. The economic climate remains at a low level in the second quarter of 2024, according to the Industry and Trade Chamber Niedersachsen in Hannover. More than every fourth company (26%) assessed its business situation as poor. This is the result of the chamber's latest survey.

"The economy in Niedersachsen is not progressing, industry has no impulses, private consumption is stagnant," said Maike Bielfeldt, CEO of the IHK Niedersachsen, at the presentation of the report in Hannover. For the survey, 1,806 companies in the state were questioned between 20. June and 8. July. Only 17% of the interviewees assessed their current business situation as good, one percentage point less than three months ago. Unchanged, 27% assessed the situation as bad, 56% were satisfied, the same as in the spring.

And the prospects for the future remain gloomy: Only 10% expect improvement in the coming months, one percentage point less than three months ago. Almost every third company (32%) expects further deterioration. In the spring, this was still the case for 34%. 58% expect no change, the same as in the spring.

Despite the success of Germany hosting the European Football Championship in Hannover that summer, the economic situation in Lower Saxony remained challenging for many businesses, with inflation continuing to decrease.
The Industrial and Trade Chamber Niedersachsen in Hannover, also known as the IHK, highlighted that despite a slight improvement in the inflation rate, the economic climate in Spring 2024 still remained challenging for many companies within the state.
With the city of Hannover hosting the European Football Championship that summer, hopes for an economic boost were high; however, a survey conducted by the IHK revealed that the majority of companies in Lower Saxony projected the economic situation to remain the same or even worsen, amidst the ongoing inflation issues in Europe.