Regional Economics: Robust And Confident

The optimism in the company of the technology region Karlsruhe has increased somewhat 2013 economic survey of the Karlsruhe Chamber of Commerce to the beginning of the year to the beginning of the year compared to the autumn of last year. So, 22 percent expect better business than 2012 and 60 percent at least equal good business in the current year. The number of pessimists has dropped significantly, from 24 to 18 percent. “If 82 percent of member firms for this year expect at least equal good business, which is a clear proof of the high competitiveness of the regional economy”, Chamber of Commerce President Bernd Bechtold says. The confidence is reflected as well in the planned investments and the employment situation. Both indicators remain at the current high level. Also refer to nine out of ten companies in their current business situation as good or are satisfied.

The visible in the autumn of last year caution in assessing the future business development has again changed in confidence in the average of all sectors of the economy. To the beginning of the year 2013 41 percent of the companies evaluate their current business situation as well (fall 2012: 45 per cent). Still, every second company is satisfied. Nine percent of companies report a decline in business activity, formerly this proportion remained at six percent. Best kept have the business-related services sector, the wholesale trade and the industry. Fallen significantly, but still in positive territory compared to the autumn, is the balance of positive and negative messages on the business situation in the retail and construction. The expectations have risen anyway: for the current year, 22 percent of companies see potential for a growing business (fall 2012: 21 percent) and six out of ten companies anticipating a steady business development (autumn 2012: 55 percent).

The proportion of farms that skeptical look on the partial fiscal year is from 24 to currently 18 percent fell. The current planning status of the companies indicated a consistently high investment activity. 76 Percent want invest at least as much as in the previous year. 26 Percent of companies want to increase their investment budgets in the next twelve months, every second company will invest in the same extent as 2012 in new plant and equipment. The share of enterprises that will reduce their investment spending in the current year or do not want to invest, is still 24 percent. The personnel policy of the next few months indicates a breather on the labour market, also at a high level. Two-thirds of the regional companies plan to maintain their staffing levels.