Ihk economic trend: sentiment cools slightly

IhK economic trend: sentiment cools slightly

Bamberg – business sentiment in the bamberg region has cooled slightly since the turn of the year, but remains positive. According to the chamber of industry and commerce (IHK) for upper franconia in bayreuth, this is indicated by its economic climate index. It therefore falls by six points and now stands at 121 points.
"The companies are still in a good mood, but they see a risk in the framework conditions that are set for us by the politicians, warns heribert trunk, chairman of the bamberg chamber of commerce and chamber president, according to a press release. Trunk is also quoted as saying: "in order for the bamberg economic region to remain strong, the groundwork for the future must be laid now – by the district, but also by the city of bamberg."
Bamberg remains the strongest economic area in the chamber district, according to the announcement. "Driver" the district, which is clearly reflected in the development of the number of employees in the retail trade, said trunk: "in the district, the number of employees in the retail trade has risen by over 50 percent since the year 2000, while in the city it has fallen by 15 percent."

Need for action in the city
This is just one example, but it shows that there is a need for action, especially in the city. Future must be shaped during economic upswings, emphasizes IHK president: "if not now, when??" From his point of view, there are enough topics: urban renewal, strengthening of the retail trade, concepts for parking, strengthening of the university, especially the development of the conversion areas and the establishment of technology transfer centers. "We should be pleased that we have so many exciting topics ahead of us. Let's get down to business!" Trunk promotes a united front: "such megatopics can only be shaped together." City and state, citizens, politics, business and science had to work together to develop sustainable solutions. Together, we will also find an ear to the ground in the decisive places. Other regions, including upper franconia, had set an example by working together with all stakeholders to launch important projects. Trunk appeals: "this must also be possible in bamberg!"
The latest business survey shows that 36 percent of bamberg companies rate their current business situation as good; only nine percent are dissatisfied. On balance, the result is still clearly positive, even if it is weaker than recently, according to the chamber of industry and commerce.
Slight slowdown attributed to development of foreign sales. The ceos surveyed had seen a drop in sales on foreign markets in the past six months. In contrast, domestic sales have remained constant. According to trunk, the chamber of industry and commerce assumes a "temporary development. Capacity utilization in the companies remains good and expectations for sales development are positive.

Low euro has an impact
The global economic situation also supports this conclusion, as exports continued to be boosted by the low euro. According to the IHK press report, high employment figures, low interest rates and employee-friendly wage agreements indicate that domestic demand will also continue to increase.
"However, the good domestic demand could prove unstable as soon as interest rates or oil prices pick up again", wolfram brehm points out, the deputy chief executive officer of the chamber of industry and commerce for upper franconia.
Businesses in the bamberg region are positive about the coming twelve months and on balance even more optimistic than at the turn of the year, according to the chamber of industry and commerce. 31 percent expect better business, while 15 percent see their business situation deteriorating in the coming months. According to the bamberger companies, the volume of sales will increase noticeably, both at home and abroad.

General conditions unstable?
Although domestic demand is picking up according to the economic barometer, 53 percent of upper franconian companies consider this trend, which is supported by the policy of cheap money, to be unstable. "One can have doubts that monetary policy-driven domestic demand has a lasting effect", christi degen, chief executive officer of the chamber of industry and commerce for upper franconia, is quoted as saying. The consumer mood is distracting from structurally important measures, and political reforms could be postponed. In addition, bureaucratic burdens such as the minimum wage law were imposed on the economy: "almost 50 percent of upper franconian companies see the economic policy framework conditions as a business risk. This should give politicians food for thought", according to degen.
Despite this, the local economy is considering increasing investment in the domestic market. This also emerges from the IHK survey. At the same time, trunk warns: "this willingness to increase the region's competitiveness must not be overstressed by the politicians." 

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