Economy - The economy in the North is not picking up
The economy in Schleswig-Holstein is stagnant. The Conjuncture Index of the Industry- and Trade Chamber (IHK) decreased slightly from 93 to 92.6 points in the second quarter of 2024. This was significantly below its long-term average of 107.7 points, as the IHK reported. "The labor shortage, high labor costs, and economic political framework are burdening businesses in the north," said the President of the IHK Schleswig-Holstein, Hagen Goldbeck. "Companies are acting cautiously due to the great uncertainties." Therefore, there is no dynamism in investment and employment intentions.
Little change from the first quarter
According to the data provided, there are only minor changes in the assessment. Almost all indicators remained at a low level. The companies evaluated their current business situation slightly better in the second quarter than in the previous quarter. However, business expectations were more pessimistic. Thirty-one percent of the respondents therefore expect a worsening of the economic situation.
Hospitality sector particularly affected
The situation is particularly tense in the hospitality sector. Both the current business and the outlook are significantly worse than usual for the industry. "The booking situation of tourist destinations in Schleswig-Holstein is behind expectations, while pressure on costs is high. The general consumption restraint is now also affecting tourism, and we are registering that people are booking more spontaneously and shorter stays."
The expected consumption upturn in retail is also not occurring, as the industry has been experiencing for some time. In industry, the order backlog is still noticeable.
Over 1,000 participants in the survey
For the economic survey in the second quarter of 2024, the IHK Flensburg, Kiel, and Lübeck contacted around 4,100 companies in their districts. 1,045 of these companies participated in the survey and shared their assessments.
The labor shortage in Schleswig-Holstein's economy, as mentioned by Hagen Goldbeck, the President of the IHK Schleswig-Holstein, is a significant challenge faced by businesses in the region. The hospitality sector, in particular, is significantly affected by this issue, leading to a more pessimistic outlook and strained business expectations.
Despite the decrease in the Conjuncture Index of the IHK in Hagen, the city where the chamber is located, the economy of Schleswig-Holstein continues to struggle with a stagnant state, as indicated by the low level of indicators and the low participation rate in the IHK's economic survey.
