Industrial companies based in the western German state of Hessen are still on the road to recovery despite the current coronavirus lockdown, according to a new survey. In contrast, the situation and business expectations in the hospitality industry, the travel industry, and parts of the retail sector in the state are "worrying," according to the economic report of the Hessian Chamber of Industry and Commerce (HIHK). The report, published on Wednesday, is based on a survey of around 2,600 companies from mid-December to mid-January.
According to the report, the assessment of the current business situation improved slightly overall, but the expectations of all companies surveyed for the coming months fell. At 94 points, the business climate index remained below the 100-point mark, which marks the transition between negative and positive overall sentiment.
"Hessen's industrial companies in particular are keeping the overall economy on track, despite continued strained employment and investment intentions," explained HIHK Managing Director Robert Lippmann. The business climate index in the sector made it into positive territory at 105 points.
Hessen's companies are concerned about closures and loss of purchasing power due to short-time work and rising unemployment. More than one in two companies also sees risks in the economic policy conditions. In the current situation, state and federal politicians should refrain from imposing further burdens on the economy, Lippmann warned. At the same time, politicians should "begin the gradual, responsible opening of closed businesses as quickly as possible."
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