- Hamburg's economic climate has experienced a slight improvement
Hamburg, Germany - The Chamber of Commerce in Hamburg has announced a slight improvement in the city's economic sentiment from April to June 2021. This improvement, while encouraging, does not necessarily signal a full recovery, as stressed by an unnamed source.
The improvement was primarily driven by a modest upswing in output growth and increased confidence in the near-term outlook. Service sector growth was stable but relatively weak, held back by ongoing structural labour shortages. Manufacturing, however, saw output growth extend its expansion streak to four months, with increased foreign and domestic demand contributing to recovery signals.
Business confidence reached its highest level since early 2022, fuelled by plans for increased public spending and hopes for broader economic upturns in the eurozone. Key factors contributing to this improvement include rising new orders, stabilising input prices, and growing confidence and expectations for the next 12 months.
Sectoral strengths, such as the aviation industry in Hamburg, have demonstrated economic resilience and growth potential. However, the recovery faces significant long-term challenges. Structural labour shortages, relatively weak growth momentum, uncertainty around sustained demand, underutilised manufacturing capacity, and inflation pressures are expected to hamper the long-term recovery.
Malte Heyne, the Chamber of Commerce's main business manager, emphasised that a single improvement in the business climate does not guarantee economic recovery. He also mentioned that the Chamber did not discuss any specific policies or initiatives that could potentially improve the long-term business climate in Hamburg.
The Chamber of Commerce evaluated 591 responses for this assessment and did not specify a reason for the improvement in the business climate. They also did not elaborate on the potential long-term implications of the current business climate for Hamburg's economy or provide a detailed analysis of the impact of the new governments in Hamburg and Berlin on the business climate.
The Chamber of Commerce also noted continued uncertainty in the international environment, but did not discuss the potential effects of this uncertainty on the business climate. The average business climate rating in Hamburg during the second quarter was 94.9 points, 10 points higher than the previous quarter.
[1] Chamber of Commerce Report, Q2 2021 [2] Economic Sentiment Indicator, Federal Statistical Office, Germany [3] Ifo Institute for Economic Research, Germany [4] Hamburg Chamber of Commerce Press Release, Q2 2021
- Despite the slight improvement in the city's economic sentiment, the Chamber of Commerce in Hamburg warns that community policy, employment policy, and finance measures should be reassessed to address the long-term challenges faced by businesses, such as structural labor shortages and underutilised manufacturing capacity.
- The Chamber of Commerce's business manager, Malte Heyne, urged that while the proper policies and initiatives have yet to be discussed for long-term improvement, agile business strategies that focus on finance and adapt to market fluctuations are pivotal in navigating the turbulence of the current economic climate.
