Manufacturing (Germany):
Renewed increase in demand

In manufacturing the current business situation received the best marks since German reunification; particularly for consumer goods producers a strong improvement was registered. Demand and production expanded. The order reserves also grew and increasingly exceeded the normal levels. Delivery bottlenecks occurred for producers of producer and capital goods. The manufacturers assessed the six-month outlook with increased confidence, with ever stronger hopes on future export business. Production plans have been revised upwards. Prices are expected to increase in coming months, especially for intermediate products and durable consumer goods. The employment situation will continue to improve in the coming months, according to the survey responses. The manufacturing enterprises in eastern Germany classified their current situation and in particular the business outlook for the coming half year much more favourably than in the previous month. In light of lively demand, satisfaction with order stocks also increased. The enterprises are even planning production increases.