The Spring 2025 edition of the SMEunited SME Business Climate Index and EU Craft and SME Barometer reports a stagnation for the business activity of small and medium-sized enterprises across the EU.
| The Business Climate Index decreased by 2.1 point to 70.6, remaining just above the 70-point base line. When presenting the latest EU SME Barometer, Economic Policy Director Gerhard Huemer explained the new downturn by a return of higher energy prices, weak demand by households and a continuation of high borrowing costs. he manufacturing sector still suffers from a lack of competitiveness of Europe’s industry and increasing tensions in the global trade environment leading to low level of investments. High costs for mortgages have a negative impact on SMEs in the construction sector, which are mainly active in private housing. In addition, SMEs see a weak demand by private households despite of an increase of real income, which holds also the services sector back. Furthermore, higher energy prices and wage increases resulted in additional upwards price pressure, which is expected to continue for the current semester. This is especially the case for labour intensive services. Finally, Mr Huemer underlined the importance to improve the overall business environment in Europe to bring SMEs back on a growth path. This includes a swift adoption of the proposal for burden reductions, investment funding and reduction of energy prices The SME Business Climate Index and EU Craft and SME Barometer – Spring 2025 |
