7 June 2023

• Euro area firms signalled a continued increase in turnover, while higher labour, production and interest costs weighed on their profitability. Turnover is expected to increase further over the next six months.
• Lack of skilled labour and rising input costs were widely reported as the main concerns.
• Over the next year, firms expect their selling prices and wage costs to increase on average by 6.1% and 5.4%, respectively.
• A comprehensive indicator of how firms perceive financing conditions shows a continued deterioration (47%), the highest since the start of the survey in 2009.
• The net percentage of firms reporting tighter price terms and conditions for bank loans reached a historical high.

In the latest round of the twice-yearly Survey on the Access to Finance of Enterprises (SAFE) in the euro area, covering the period from October 2022 to March 2023, firms indicated a continuing improvement in business activity, with increased turnover reported more frequently among large…