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Brexit dampens business expectations and export prospects

Chamber of Commerce Hamburg publishes economic barometer for Q2, 2016. Business prospects vary from branch to branch

Companies in Hamburg are more cautious about business expectations and export prospects for the next 12 months than in the previous quarter, according to the latest economic barometer by the Chamber of Commerce Hamburg. However, they are more positive now than during the previous survey.

Good business presently

Prof. Hans-Jörg Schmidt-Trenz, CEO of the Chamber of Commerce Hamburg, said: “The uncertainty that has arisen from Britain’s upcoming exit from the EU is having a negative impact on the business expectations of companies in Hamburg”, adding, “The firms cannot yet assess the consequences for their businesses and are thus more cautious about their future prospects despite present, good business.”

Service providers are more optimistic

The results of the survey vary from sector to sector. Only a quarter of firms in manufacturing expect exports to increase over the next 12 months. Two-thirds expect the same level of exports and every twelfth firm expects a decrease in exports. Prospects were far more positive in the previous quarter. Now, exporting service providers are slightly more optimistic and every third company expects an increase in exports.

Scepticism in media and IT

Banks are especially pessimistic about business expectations. The hospitality industry, retail, media and IT also expressed doubts compared to the previous quarter. Wholesale and foreign trade do not expect overall business to worsen despite the Brexit decision.

Every three months, the Chamber of Commerce surveys around 1,200 member companies and about 60 per cent respond. The present survey was conducted from June 24 to July 12, 2016 and after the Brexit referendum on June 23.
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Sources and further information:
www.hk24.de

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