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EDP service providers: Business continues to decline, further job reductions

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  • Joachim Gürtler

Abstract

According to the 30th business survey of EDP service providers conducted in July and August 2002, the business situation continued to deteriorate. Only 18% of the enterprises judged their business situation as favourable, 53% as satisfactory and 29% assessed their present situation as poor. Furthermore, the enterprises are placing less and less confidence in the business outlook. The business climate worsened again, accordingly. In total the number of employees has declined by almost 2% in the German software sector (1st quarter: -1%). The worries about weakly filled order books are rapidly increasing. 60% of the enterprises complained of low order levels in the second quarter of 2002. On the other hand, the lack of specialists (6%) and financing difficulties (8%) were reported by relatively few firms.

Suggested Citation

  • Joachim Gürtler, 2002. "EDP service providers: Business continues to decline, further job reductions," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 55(18), pages 37-40, September.
  • Handle: RePEc:ces:ifosdt:v:55:y:2002:i:18:p:37-40
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    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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