Manufacturing (Germany):
Decline in new orders

The firms in manufacturing appraised their current business situation much less favourably than in the previous month. They also judged their outlook for the next six months with much more reserve. The demand situation has developed more weakly so that order reserves have not increased. The contentment with order backlogs decreased, and production activity has been cut back. Nevertheless, the enterprises intend to expand production again in the coming months. Despite the strong euro they anticipate an increase in export business. The exporters reported a weakening in competitiveness outside of the EU but competitiveness within the EU has improved. They plan to increase staff levels further but not at such a strong pace. Some areas such as metal production/processing or mechanical engineering complained clearly of a lack of specialists. Equipment utilisation in manufacturing is almost as high as in the previous survey but does not quite match the previous-year level. Despite the worsening in the business climate, many areas of manufacturing are currently still in sound condition.