- Survey: mood in NRW economy improves
Mood improves slightly among companies in North Rhine-Westphalia. After the monthly determined business climate indicator had fallen twice in a row, it now shows a slight increase, as reported by NRW.Bank. However, the value remains in the negative range.
For the "NRW.BANK.ifo Business Climate" indicator, the Ifo Institute for Economic Research surveys 1,500 companies in NRW each month about their economic situation and future prospects.
NRW.Bank: Cautious Recovery
"The NRW economy has returned to a cautious recovery path. Unlike the trend for Germany, the business climate in July has developed positively," said the CEO of NRW.Bank, Eckhard Forst. The stable development was mainly driven by the service industry and retail, which benefited from solid private consumption. Notably, the climate in logistics and the hospitality industry improved significantly.
Challenging situation persists in manufacturing
The situation in manufacturing remains challenging. While only around 8% of companies are now affected by shortages of raw materials and intermediate products, according to the survey, capacity utilization has fallen due to low order intake. Four years ago, utilization was even lower.
Nevertheless, companies look more optimistic about the future than they did in June. "There was a strong increase in the regionally important chemical industry and the food industry. However, the automotive industry had to accept a decline in business climate."
In the construction industry, sentiment darkened. While the business climate in civil engineering improved, residential construction recorded a decline. Overall, the construction industry was less satisfied with current business in July than in the previous month. The outlook for the next six months remains unchanged, the bank said.
- The CEO of The Commission, NRW.Bank, Eckhard Forst, attributed the cautious recovery of the NRW economy to the service industry and retail, citing solid private consumption as a key factor.
- Despite the positive development in the business climate in July, the situation in manufacturing, specifically within the automotive industry, remains challenging for companies, according to The Commission's survey.
