The hope for an economic upturn in Lusatia has not yet been fulfilled, according to a survey by the Chambers of Industry and Commerce (IHK). After a noticeable improvement in the spring, the business situation in Lusatia in Brandenburg and Saxony deteriorated again in the fall, according to the Cottbus and Dresden Chambers of Industry and Commerce. More than 600 companies from the industry, construction, services, trade and hospitality sectors in the districts of Görlitz, Bautzen, Oberspreewald-Lausitz, Elbe-Elster and Spree-Neisse as well as the city of Cottbus were surveyed for the analysis.
Only 10 percent believe the situation will improve
"The fact that the overall assessment is not even weaker is thanks to the positive voices that are increasing in the construction and hospitality industries," said Rohleder. Business expectations remained subdued. Only 10 percent of those surveyed expected their situation to improve, while more than three times as many (34 percent) anticipated a further deterioration. A turnaround is not in sight. In industry, trade and services, expectations would increase slightly at a low level compared to spring, but would fall significantly in the construction and hospitality industries.
Companies anticipate falling turnover
According to the survey, turnover is expected to fall across all sectors. The Lusatian economy remains very reluctant to invest. Around half of companies (49 percent) are currently not investing at all, it said. Increasing (18 percent) and decreasing investment plans (14 percent) were almost in balance. "The economy lacks planning security and economic policy impetus. The main risks for companies are energy and raw material prices (67%), high labor costs (65%) and the economic policy framework (61%)". This was followed by a shortage of skilled workers (51%) and domestic demand (45%).
