German Companies Remain Cautious Despite Slight Improvement in Business Situation
From 15 December 2025 to 23 January 2026, the nationwide economic survey of the Deutscher Industrie- und Handelskammertag (DIHK) was conducted across Germany. Around 26,000 companies participated. The results were presented today at 9:30 a.m. by DIHK Chief Executive Officer Dr. Helena Melnikov during a press briefing.
No Broad-Based Economic Upswing Yet
While companies acknowledge the Federal Government’s reform efforts, there is still no widespread sense of economic momentum. Many businesses report that tangible relief in day-to-day operations is lacking.
Only 16% of companies expect an improvement in the economic situation over the next twelve months, while 25% anticipate a deterioration. Investment and employment outlooks remain subdued.
The DIHK forecasts economic growth of just 1.0% in 2026, largely driven by statistical effects and increased public spending, particularly in security and defense. Structural challenges continue to weigh on overall economic performance.
Key Findings at a Glance
Slight Improvement in Current Business Situation
At the beginning of the year, 25% of businesses rate their current situation as “good” and 24% as “poor,” unchanged from autumn 2025. The balance improves marginally to +1 point.
Business Expectations Remain Weak
Only 16% expect better business conditions (previously 15%), while 25% foresee worsening conditions (previously 27%). The expectations balance stands at -9 points, below the long-term average (+3 points), but improved compared to the previous year (-17 points).
Main Business Risks
- Companies identify the following as the most significant risks:
- Labour costs (59%, highest level recorded)
- Domestic demand (58%)
- Economic policy framework conditions (58%)
Export Expectations Stabilise
In the export sector, outlooks show signs of stabilisation. 22% expect declining exports, while an equal share anticipate growth. The export expectations balance improves from -10 to 0 points.
Low Investment Willingness
Investment intentions remain restrained. Only 23% plan to increase domestic investments (previously 22%), while 31% expect to reduce spending. The investment balance stands at -8 points.
Employment Plans Under Pressure
The economic slowdown is reflected in hiring plans. 12% of companies intend to increase staff numbers (previously 11%), whereas 23% expect to reduce employment (previously 24%).
Further details and the full survey results are available below: