Bavarian Swabia's economy steadies, but a quarter of manufacturers plan job cuts
The IHK Schwaben business index edges up to 105 points. Exports pick up, but 22% of companies plan to cut jobs and business with China is weakening.
Symbolic image · Photo: Ricardalovesmonuments / Wikimedia Commons, CC BY-SA 4.0 (cropped and resized)
The economy in the Bavarian region of Swabia is recovering only slowly. The business climate index of the IHK Schwaben chamber of commerce rose three points to 105 in its autumn survey, above the growth threshold of 100 but well below the 10-year average of 113. The chamber polled 777 companies from Sept. 14 to 25. "The economy is stabilizing at a mediocre level at best," chief executive Marc Lucassen said.
Foreign business is a bright spot: 30% of manufacturers reported more orders from abroad, 7 percentage points more than in spring. But 44% reported fewer orders from China. The index for the security and defense industry rose seven points to 120. Construction and retail remain below the growth threshold at 90 points each, tourism at 88.
Twelve percent of companies plan to add jobs, while 22% plan cuts, including roughly one in four manufacturers. Companies named economic policy (66%) and energy and raw material prices (65%) as their biggest risks. "The slight improvement is not enough for a real upswing," deputy chamber president Dorothee Buhmann said.