Germany's service companies, which account for about two thirds of Europe's largest economy, are more upbeat than at any time in four years, according to a survey of some 10,000 firms published on Saturday. About 28 percent of companies polled describe their current business conditions as "good", up from 23 percent a year ago, while 17 percent label current conditions as "poor", according to the poll by the DIHK chambers of industry and commerce published in Die Welt newspaper on Saturday. "We're seeing a clear growth trend and a slight increase in employment," DIHK president Ludwig Georg Braun told the newspaper.
"The service branch has reached its best position since 2001, the expectations are stable and good." Braun said the business conditions of the companies surveyed had made a "jump higher" this year. He said 27 percent reported expectations for better results in 2005 while 20 percent are pessimistic for this year.
Braun said 20 percent plan higher investments in 2005, 54 percent will keep investments steady while 26 percent plan to cut investments.
Braun said, however, that the service companies were reserved about creating new jobs. He said only 14 percent want to add jobs, up from 12 percent a year ago, but 22 percent are planning to cut jobs, down from 23 percent last year.
Also, 64 percent said they have no plans to change their staff levels, down from 65 percent a year ago.