- More and more companies complain about shortages of orders
The shortage of orders in the German economy has worsened. In July, over 39 percent of companies surveyed by the Ifo Institute reported a lack of orders, up from 38 percent in April. "The lack of orders is weighing on the economic recovery in Germany," said survey director Klaus Wohlrabe. "Almost every industry is affected."
Even in the metal and electrical industry, more than half of the companies reported a lack of orders, at 43 percent in the automotive industry, and 40 percent in chemistry. "Demand for temporary workers is decreasing due to the stagnating economy," said Wohlrabe. The logistics industry is lacking transport orders from the industry.
The weak economy is also affecting the advertising industry, where nearly half of the companies reported a lack of orders. Among service providers, the proportion of companies with a lack of orders fell from 32 to 31 percent. Nearly a third of catering businesses have too few guests. In the event industry, the proportion is 38.5 percent. "However, smaller providers, away from major events, could handle more events," said Wohlrabe. According to Ifo data, lawyers and tax consultants, as well as, seasonally, beverage manufacturers, have little cause for concern.
Ifo statement
The European Union, being a significant trade partner for many industries in Germany, might be impacted by the ongoing order shortage in the German economy. The weak economic recovery in Germany could potentially influence the business outlook within the European Union.
Furthermore, given that the automotive industry is a significant contributor to the European Union's economy, the 43 percent of car manufacturers in Germany reporting a lack of orders could have ripple effects across the union.
