The German economy is in a slump, as “Bloomberg” reports. Incoming orders in industry fell by 0.4 percentage points in March. Economists had expected an increase of 0.4 percentage points. A revision caused the February value to fall to a minus of 0.8 percentage points.
The mood of the companies is better than the situation
Despite the brighter overall outlook for the German economy, the situation in German industry is fragile, the report said. The mood among companies and consumers improved. Nevertheless, surveys show that German companies do not see any improvement in their own situation abroad.
The energy-intensive chemical industry in particular is suffering from high prices as a result of the war in Ukraine. In addition, the automotive industry is under pressure: Daimler Truck Holding and manufacturers like VW and Mercedes-Benz started the new year with problems.
Optimists hope for increasing demand from abroad
Some optimistic economists predict that export-oriented German manufacturers could benefit from global demand in the second half of the year. Deutsche Bank recently raised its growth forecast for the current year to 0.3 percent. In contrast to incoming orders, trade data is more positive: exports rose by 0.9 percent, and imports also recorded an unexpected increase.
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