Ifo survey
Ifo: Lack of orders rises to highest level since 2009
The German economy is suffering more and more from a lack of orders. A regular survey shows worse figures than during the coronavirus crisis.
More and more companies in the German economy are struggling with a lack of orders. 41.5 percent of companies complained about this in a recent survey by the Munich-based Ifo Institute. This is 2.1 percentage points more than in the last survey three months ago. Not since the financial crisis in 2009 has there been such a poor figure. The highest shortage of orders recorded during the coronavirus crisis was narrowly exceeded for the first time. "The lack of orders continues to hamper economic development in Germany," says Klaus Wohlrabe, head of the Ifo surveys. "Hardly any industry has been spared."
However, there are clear differences. In the manufacturing industry, 47.7% of companies are complaining about a lack of orders. In the metal production and processing sector, the figure is as high as 68.3%. The manufacture of metal products and rubber and plastic goods also have well above-average figures at almost 60% each. The automotive and chemical industries, on the other hand, are below the manufacturing industry average at around 44% each.
Trade particularly affected
Demand in the retail sector is much worse - 65.5% of businesses are complaining here. This is the highest figure since at least 2006 and is mainly due to the wholesale trade, which is dependent on industry, says Wohlrabe. However, demand in the retail sector is also worse than it has been since 2008, with 56.4 percent of companies complaining. The situation is slightly better for service providers. Here, only 32.1 percent of companies are complaining about a lack of orders. Among those affected are labor brokers. "Temporary workers are less in demand in the current situation," says Wohlrabe. In contrast, the situation is much better for legal and tax consultants as well as auditors. High levels of bureaucracy and regulation have resulted in a high demand for advice, according to Ifo.
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