Manufacturing (Germany):
Increasing scepticism

Manufacturing firms reported a slightly more unfavourable business situation. The demand situation developed more weakly and the companies are more dissatisfied with their order stocks. Consequently they intend to reduce production in the coming quarter. Exports will no longer expand so strongly, in the opinion of the survey participants. In comparison to the same month of the previous year, export opportunities are assessed far less optimistically. The price front remains unsettled. Since producer prices have increased noticeably, the enterprises plan to increase prices also in the coming months. In all main groups - intermediate goods producers, capital goods manufacturers and consumer goods - the firms have given less favourable assessments to their business situation. Capacity utilisation is somewhat lower than earlier in the year or during all of last year. Here, the slowdown of the economy is evident, although capacity utilisation is still above average. In addition, few firms assessed their production capacities as too large. In terms of the six-month outlook, the surveyed firms are clearly more sceptical. Only a minority anticipates an improvement in their business development.