Manufacturing (Germany):
More optimistic export expectations

The current business situation in manufacturing was appraised insignificantly less favourably than in May. Among producers of consumer durables and intermediate goods, the situation improved somewhat after the clear worsening in the previous three months. The rise in incoming orders persisted, and production was stepped up. Also the total volume of order stocks rose - with the exception of the consumer goods area - to normal levels. Firms gave the most favourable appraisal of their profit situation in years. Responses of excess inventories were few and far between. Increasing optimism was expressed in the business expectations, and production plans point to further increases. Scope for increasing prices is larger, according to the survey participants, especially for durable consumer goods. The willingness to hire additional personnel has increased again. In eastern Germany the business situation, which had constantly improved since the beginning of the year, was again assessed a little less positively in May. With regard to the business outlook, the surveyed participants again expressed more confidence, also with respect to exports. In spite of being less satisfied with their order stocks, they intend to expand production in the coming months and to increase employee numbers.