So far it was more of a bad warning, now there is no longer any doubt: Europe's largest economy is falling into recession.

In the current quarter, economic output will shrink by almost half a percentage point, and German companies are looking to the next six months with great concern.

The Ifo index, the most important mood barometer for the economy, shows this with pitiless clarity.

The index fell unexpectedly sharply, to its lowest level since the beginning of the Corona crisis.

The outlook is even bleaker than in May 2020.

It is worrying that the slump cuts across all sectors.

The high energy prices are hitting the energy-intensive industries, some of which are already curbing their production, particularly hard.

Indirectly, however, they also spoil the business of other companies.

The mood swing this month was therefore strongest among service providers.

They fear that consumers will hold onto their money because of the foreseeable high energy bills.

Unfortunately, the supply chain problems continue to cause problems for the German economy.

The companies complain that the burgeoning hope that this construction site will soon be resolved is already passé.

And the outcome of the Italian election with all the uncertainties for the euro area is not even priced into the new figures.

A recession is not the end of the world

In this delicate situation, it is once again important to emphasize: There is no reason to panic just yet.

A recession is not the end of the world for Germany.

Businesses and the state have reserves to cushion hardship and prevent mass unemployment.

However, it is high time to give consumers, but above all companies, more planning security now.

The gas levy strangling has to stop.

Instead, a coherent concept is needed as to how the price signal required to save energy can be maintained while bakers, industrial companies and craftsmen see light at the end of the tunnel.

The concepts and experiences from the Corona crisis are on the table.

It is completely incomprehensible why the government hesitates and hesitates until companies lose hope for better times.