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German Companies Face Order Shortages

The Ifo Institute reports a significant order shortage in Germany, impacting various sectors, with the industrial sector being particularly hard hit. However, some sectors, like consulting, show strong performance.

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EconomyGermany Labour MarketIndustrySurveyOrders

Ifo InstitutGerman CompaniesMechanical EngineeringMetals And Electronics IndustryTemporary Work Agencies

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How is the lack of orders in the industrial sector impacting other related fields?: The lack of orders in the industrial sector is also affecting related fields such as logistics and temporary work agencies, which are experiencing decreased demand. The service sector is also affected, although to a lesser extent than the industrial sector.
What percentage of German companies are currently reporting a lack of orders, according to the Ifo Institute?: The Ifo Institute's survey reveals that 41.5% of German companies are currently experiencing a shortage of orders, the highest level since the 2009 financial crisis. This order shortage is significantly hindering Germany's economic development, impacting various sectors.
Are there any sectors that are currently performing well despite the overall economic downturn? If so, which ones?: While many sectors are struggling, legal, tax, and auditing firms are experiencing high demand due to increased regulatory burdens in other sectors. Only a small percentage report insufficient orders, highlighting a stark contrast within the German economy.
What are some of the contributing factors to the current economic situation in Germany, as identified by the Ifo Institute?: The Ifo Institute attributes the current situation to a combination of factors, including global economic slowdown and increased regulatory burdens in many sectors. While there is some cautious optimism regarding order backlogs, the institute cautions that a full recovery is still far off.
Which sector is most severely affected by the order shortage, and what percentage of companies within that sector are reporting the problem?: The industrial sector is particularly hard hit, with 47.7% of companies reporting a lack of orders. Key industries like mechanical engineering, metals, and electronics are especially concerned about new business, although a slight increase in order backlogs in September offers some hope.

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