Manufacturing: Shorter working hours considerably expanded

The business climate in manufacturing (including food and beverages) did not worsen further in March. Although the firms assessed their current situation even more negatively than in February, for the third time in succession they were less pessimistic regarding the business outlook. The survey results indicate that demand has again declined but not as much as in the previous month. Nevertheless, the use of shorter working hours expanded considerably. In December 9% of the firms reported using this measure; in March it was 37%. Personnel plans point to more staff reductions, and more use is to be made of shorter working hours. Production will not be reduced as much in the next quarter, although firms assume an even more unfavourable export situation. The firms have been forced to make further price concessions and expect this to continue in the months ahead.