The self-employed have experienced a substantial worsening in their business environment.
The business environment for independent contractors took a turn for the worse in August. The Jimdo-ifo Business Climate Index dropped from -13.4 to -18.4 points, hitting its lowest point since the start of the year.
The current scene showed a clear worsening, with expectations for the next half a year being painted even more dismal. "Freelancers cannot shield themselves from the overall economic downturn," states ifo expert Katrin Demmelhuber. "A major concern persists: the lack of job opportunities." Major corporations and consumers held off on orders, with numerous small service providers and retailers noticing a decrease in revenue. A silver lining revealed itself in the tourism sector, which showed an improvement.
The index is derived from monthly polls of 1,600 self-employed individuals and small businesses employing up to nine people. Various sectors are covered, with a primary focus on services.
The deteriorating business climate is affecting numerous small service providers and retailers, leading to a decrease in their revenue. The current poor business climate, as reflected in the Jimdo-ifo Index, has raised concerns about the scarcity of job opportunities for freelancers.
