Survey: Sentiment in Saxony's skilled trades remains gloomy

The mood in the skilled trades sector in eastern Saxony remains gloomy. According to the fall survey, the business situation of companies remains poor. There is a lack of impetus to stimulate the economy, said Jörg Dittrich, President of the Dresden Chamber of Crafts. Energy prices are too high, ancillary wage costs are continuing to rise and excessive bureaucracy is holding companies back. A shortage of skilled workers and customers' reluctance to spend are further exacerbating the situation.

The business climate index currently stands at 104 points, which corresponds to the spring value. Compared to fall 2023, it has increased by three points - five years ago it was still at 130 points. The mood has "dropped noticeably" since then, uncertainty and pessimism have gripped companies and they are postponing investments, said Managing Director Andreas Brzezinski.

In the survey, 45% of companies described their current business situation as good and 16% as poor, as in the previous year. Only eight percent expect the situation to improve and just under a quarter expect it to deteriorate. The willingness to invest is very low and is declining in some areas, while employment figures are also stagnating. Only eleven percent of companies increased their workforce, 15 percent saw their workforce shrink - and 13 percent expect a further decline.

Declining turnover and order situation

22% of businesses report declining turnover, only 16% report the opposite and 28% of all skilled trade companies expect turnover to fall at the start of 2025. Almost one in three are talking about falling incoming orders and a quarter are reporting a below-average order backlog for the time of year. Order levels remain at a relatively high level. 35% of companies are planning price increases for the next quarter.

At 94 points, the business climate in the construction trade is currently the worst. One in three companies in this sector expects business to deteriorate in the coming months, while a good third anticipate further declines in turnover. For the analysis, 3,010 companies were surveyed between the end of August and the end of September.

Clear demands from the skilled trades

In view of the situation, the chamber is calling for "swift fundamental structural reforms and a change of course" in favor of competitiveness. Skilled trades services must remain affordable and demand must be stimulated. Instead of a clear agenda to boost the economy, "there is stagnation at the political level", said Brzezinski.