Overview

• Bavaria’s BIHK business-climate index edged up to 105 but stayed below the long-run average of 112, with the overall investment indicator at 1 point and industry at minus 11.
• Many Bavarian firms plan staff reductions, reflecting weak demand and high costs that executives warn are eroding competitiveness.
• In the Oldenburg region, the IHK climate index slipped 3.6 points to 94.7 as industry and wholesale turned more pessimistic, while parts of retail and services held steadier.
• Schleswig-Holstein’s index dropped from 98.6 to 86.4, its lowest since 2023, with companies citing policy conditions, labor costs, skills shortages, weak domestic demand, and energy prices as top pressures.
• IHK Schwaben reported a third straight survey without recovery, with only 14% of firms planning hires versus 24% expecting cuts, as national announcements point to job reductions in six figures and business groups press for deregulation and targeted investment.