Economy: Ifo: Shortage of orders rises to highest level since 2009

In the German economy, a lack of orders is causing problems for more and more companies. 41.5 percent of companies complained about this in a recent survey by the Munich Ifo Institute. That is 2.1 percentage points more than in the last survey three months ago. There hasn’t been such a bad value since the 2009 financial crisis. The highest order shortage recorded during the Corona crisis was narrowly exceeded for the first time.

“The lack of orders continues to hamper economic development in Germany,” says the head of the Ifo surveys, Klaus Wohlrabe. “Hardly any industry is spared.” However, there are clear differences. In the manufacturing sector, 47.7 percent of companies complain about a lack of orders. In the metal production and processing sector the figure is as high as 68.3 percent. The production of metal products as well as rubber and plastic products also has values ​​that are well above average at almost 60 percent. However, at around 44 percent each, the automotive industry and chemicals are below the average for the manufacturing industry.

Trade particularly affected

Demand in retail is much worse – 65.5 percent of companies complain. This is the highest value since at least 2006. This is mainly due to the wholesale trade, which is dependent on the industry here, says Wohlrabe. But demand in retail is also worse than it has been since 2008, with 56.4 percent of companies suing.

The situation is somewhat better with service providers. Here only 32.1 percent of companies complain about a lack of orders. Among other things, labor brokers are affected here. “Temporary workers are less in demand in the current situation,” says Wohlrabe. However, things look much better for legal and tax advisors and auditors. According to the Ifo, high levels of bureaucracy and regulation have resulted in a high demand for advice.