The economic situation in Saxony has deteriorated noticeably following the oil price shock caused by the war in Iran. The sharp rise in energy and fuel prices following the recent geopolitical turmoil in the Middle East has further depressed the already fragile economic mood and dashed existing hopes of recovery. This is the conclusion of the latest spring economic survey conducted by the Saxon Chambers of Industry and Commerce, in which 1,697 companies with more than 82,000 employees took part.
According to the survey, many companies are facing rising fuel prices, high labor costs, restrained demand and ongoing uncertainty. This is leading to a tense liquidity situation: cost control is dominating business decisions and planned investments are once again being postponed in many places, it said. 29% of the companies surveyed were planning with decreasing budgets. Capacity expansions were only planned in one in five companies.
