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Business confidence among German medium-sized companies reaches record high: study

Source: Xinhua    2018-05-19 04:51:56

BERLIN, May 18 (Xinhua) -- Business confidence among so-called "Mittelstand" companies of medium size in Germany has reached a record high, a joint study published on Friday by the banking association BVR and DZ bank finds.

The findings were based on a representative survey of 1,500 firms. 92 percent of respondents considered their current economic situation to be either "good" or "very good", marking the highest level since the beginning of regular measurements by BVR and DZ bank in 1995.

The term "Mittelstand" is commonly used in Germany to denote small- and mid-sized companies, but also has qualitative connotations such as family-ownership, long-term focus, social responsibility and strong regional ties. The sector is often considered to constitute the backbone of the export-oriented German economy.

Commenting on the study findings on Friday, DZ bank executive Uwe Berghaus argued that "robust" demand in the German domestic market seemed to have outweighed concerns over a slowing of global growth for mid-sized entrepreneurs.

Berghaus highlighted that every third company (30.3 percent) surveyed was planning to hire additional staff within the next six month, while 78.3 percent of intended to make investments in their own business.

Nevertheless, customers still face the prospect of higher prices in the near future based on responses from the survey. The majority of "Mittelstand" companies expects to have to raise their sales prices, mainly as a consequence of a recent spike in the market value of crude oil.

Editor: Mu Xuequan
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Xinhuanet

Business confidence among German medium-sized companies reaches record high: study

Source: Xinhua 2018-05-19 04:51:56

BERLIN, May 18 (Xinhua) -- Business confidence among so-called "Mittelstand" companies of medium size in Germany has reached a record high, a joint study published on Friday by the banking association BVR and DZ bank finds.

The findings were based on a representative survey of 1,500 firms. 92 percent of respondents considered their current economic situation to be either "good" or "very good", marking the highest level since the beginning of regular measurements by BVR and DZ bank in 1995.

The term "Mittelstand" is commonly used in Germany to denote small- and mid-sized companies, but also has qualitative connotations such as family-ownership, long-term focus, social responsibility and strong regional ties. The sector is often considered to constitute the backbone of the export-oriented German economy.

Commenting on the study findings on Friday, DZ bank executive Uwe Berghaus argued that "robust" demand in the German domestic market seemed to have outweighed concerns over a slowing of global growth for mid-sized entrepreneurs.

Berghaus highlighted that every third company (30.3 percent) surveyed was planning to hire additional staff within the next six month, while 78.3 percent of intended to make investments in their own business.

Nevertheless, customers still face the prospect of higher prices in the near future based on responses from the survey. The majority of "Mittelstand" companies expects to have to raise their sales prices, mainly as a consequence of a recent spike in the market value of crude oil.

[Editor: huaxia]
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