Business consulting – Photo by Yan Krukau on Pexels
At the presentation of the new EU SME Barometer, Gerhard Huemer, Economic Policy Director, explained that “these positive results are driven by stabilising energy prices, easing inflation, and falling interest rates. We’re seeing that Northern European SMEs are benefiting more rapidly from the improving business climate, especially in trade and energy-intensive sectors. But let’s not forget uncertainty is still present. The recovery is real, but fragile”.
The EU Craft and SME Barometer shows clear signs of economic recovery, with most business indicators improving and surpassing expectations for the first semester of 2025. These results suggest that earlier pessimism may have overstated the impact of global instability. The more cautious outlook for the second semester is mainly driven by uncertainty than by worsening business conditions. The upward trend in key areas such as turnover, employment, and orders points to a potential continuation of the recovery.
Concerning the performance by sectors, manufacturing continues to be under pressure, despite easing cost constraints. On the other hand, the construction sector is showing signs of recovery, supported by falling interest rates and new investments. The service sector is experiencing wage-driven price increases, which become the main driver of inflation.
Mr Huemer emphasized that, to overcome current uncertainty, the policy focus should be on reducing administrative burdens, continue stabilising energy and financing costs, and fostering a predictable environment that supports innovation, investment, and fairness within the single market.
Source: EUbusiness
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