The thousands of small and medium-sized firms that make up the backbone of Germany's economy have become less optimistic about current business and the future in recent months, a survey reported today.
The thrice-yearly survey of its members by the German chambers of industry and commerce (DIHK) showed more pessimistic than optimistic firms in June, a negative balance for the first time in two years.
"In the companies' view, investment, employment and lastly (private) consumption will . . . remain way behind what would have been expected in a normal period of economic recovery," DIHK said in a summary of its findings.
"The economy threatens therefore to move at a slow pace, although not crash," it added.
The DIHK survey is Germany's broadest business survey. The association said it sampled some 22,000 firms in April and May. In contrast, the country's closely watched Ifo business climate survey is based on a monthly survey of 7,000 companies.
The survey found on balance firms remained positive on export business, albeit less so than in February, and had grown more pessimistic on future investment and employment.
All the survey's key components have deteriorated since February.