Medium-sized businesses in Saxony-Anhalt: mood sinks to its lowest point!

Medium-sized businesses in Saxony-Anhalt: mood sinks to its lowest point!

The mood among medium-sized businesses in Saxony-Anhalt has continued to deteriorate. According to a current survey by the Leibniz Institute for Economic Research Halle (IWH) and Creditreform, only 49.5% of the 410 companies surveyed rated their situation as good or very good in the first half of 2025, a decrease from 51% in the previous year. Almost 10% of those surveyed classify their business situation as poor or inadequate. n-tv reports that the industrial weakness and restrained consumer demand are putting a heavy burden on medium-sized businesses.

The retail and service sectors are particularly affected by the slump in consumption. 30.7% of companies report declining sales, while only 23.6% report an increase in sales. What is alarming is that only about one in five companies expects revenue to increase. The willingness to invest fell to 46.6%, its lowest level in ten years. Another sad result: almost one in four companies has cut staff, which is putting additional strain on the already strained labor market.

Staff cuts and shortage of skilled workers

Overall, the survey shows that there has been a significant reduction in personnel in medium-sized companies in the last twelve months. 23.2% of companies reduced their number of employees, while only 19.1% were able to hire additional workers. IWH reports that every second company plans to leave the number of employees unchanged, which indicates a great deal of reluctance on the part of companies. The reasons for the decline are a weak order situation and age-related departures.

On the other hand, however, companies in the manufacturing sector have plans to expand investments and increase staff. However, this positive news cannot hide the fact that 75.9% of respondents do not intend to increase their number of employees. The shortage of skilled workers remains a major obstacle to the recovery.

Bureaucracy as a brake on growth

Another point that causes problems for medium-sized companies is the perceived bureaucracy. Over 80% of companies complain about increasing complexity in administrative processes and the associated costs. WITH Saxony-Anhalt highlights that 77.4% of companies are aware of increased requirements that are having a noticeable impact on day-to-day business.

Forecasts indicate that the German economy could shrink further in 2025, which is likely to further increase the challenges for medium-sized businesses. Production figures, order backlogs and building permits are developing negatively, and the unemployment rate is constantly increasing. A gloomy forecast for the next few months that is already increasing the pressure on companies.

The situation among medium-sized businesses in Saxony-Anhalt remains tense. It is clear that without targeted measures to improve the general conditions and the skilled worker situation, many companies will continue to be faced with major challenges.