SME Business Climate Stabilizes in May
The KfW-ifo SME Barometer indicates a stabilization in the business climate for small and medium-sized enterprises (SMEs) in May, rising by 0.5 points to -21.6. The improvement is primarily driven by service providers.
The business climate for small and medium-sized enterprises (SMEs) stabilized in May after two consecutive declines. According to the KfW-ifo SME Barometer, the business climate rose by 0.5 points to -21.6.
Both the assessment of the current situation and business expectations contributed to the slight improvement in sentiment. However, a closer analysis reveals that the improvement is largely driven by companies in the service sector, suggesting that other industries have not necessarily seen the same level of recovery.
The stabilization in the SME business environment suggests a cautious optimism despite ongoing challenges. The May figures indicate that while the overall trend is more stable, uncertainty factors may still have a significant impact on business operations.
Further details on specific sector data and potential future outlooks are available in the report published by KfW Research. The report provides a deeper analysis of the economic situation and expectations of SMEs in May 2026.