Manufacturing (Germany):
More favourable business situation

The enterprises of the manufacturing sector judged their current business situation even more favourably than in the previous month. A clear upward movement was observed by capital goods producers as well as by manufacturers of consumer durable goods. Demand and production increased, on average, and order stocks were above normal levels, with the exceptions of consumer durables. The slight inventory pressure abated. In the business expectations for the next six months reduced confidence was expressed, and producers of intermediate goods were even more sceptical than in previous surveys. Also optimism with regard to exports has weakened. As a result, production plans are not as frequently geared to expansion. Personnel levels will continue to be increased in the coming months, however, according to the responses of the survey participants. In eastern Germany the current business situation was evaluated just as positively as in January. The outlook for the coming half year was assessed with reduced confidence with weaker impulses from exports expected. Since an unintended increase in the stock of finished goods has resulted, increases in production are planned only in isolated cases. Personnel plans have been revised downwards.