Manufacturing (Germany):
Weaker business situation

The current business situation in manufacturing was evaluated less favourably, after the improvement in the previous month. For producers of consumer durables as well as in the food and beverage sector, the negative responses slightly held the balance. Demand decreased, but order stocks still increased despite stepped-up production activity and were above normal levels. Only some firms felt that their levels of finished goods were too high. Confidence in the six-month outlook weakened somewhat but strengthened among consumer durable producers. Manufacturers appraised their future export business almost as optimistically as before. Productions plans in most cases are expansive, although consumer durable producers plan to further cut back production. The share of companies that intend to increase staff levels increased again; in light of the planned production cuts, consumer durable producers, however, plan to decrease the number of employees in the coming months. The manufacturing firms in eastern Germany assessed their current business situation a little more positively than in the previous month. They are still confident regarding the business outlook, also concerning exports. Order stocks increased somewhat and production plans are still expansive. According to the responses, hiring propensity has also increased again.