Swiss and German SMEs report growing pessimism over demand and outlook

A new survey of 1,287 small and medium‑size enterprises (SMEs) in the Swiss canton of Zürich shows a decline in confidence: 60 % now rate their situation as positive, down from 64 % a year earlier, and the share expecting a positive business development fell from 70 % to 64 %. About a third cite weak market demand as a major challenge, with especially low optimism in industry (30 % positive) and trade (47 %).

In Germany, a VR Smart Finanz barometer reveals a similar turn. The future‑outlook index dropped 19 points to 11, and only 44 % rate the current situation as good or very good. More than half (53 %) report liquidity constraints and roughly one‑fifth fear that their business could become insolvent. Respondents point to falling demand, rising energy costs and uncertainty from the Iran and Ukraine wars and trans‑Atlantic trade tensions. Investment plans are being postponed, with a shift toward digitalisation over sustainability projects.