Business: order situation in the economy improves

The lack of order in the German economy is declining. In April, only 37.3 percent of the companies complained to him in a survey by the Munich IFO Institute. In January it was still 40.2 percent, as the researchers say, even 41.5 in October 2024. This continues the relaxation, which had already been indicated at the beginning of the year.

However, the head of IFO surveys warns, Klaus Wohlrabe: “Despite the slight improvement, this is not yet a sustainable recovery.” The demand remains behavior in many places, “and the currently high uncertainty could quickly turn the development back”.

The situation in industry improved particularly significantly. Here the proportion of companies with a lack of order dropped from 44.8 to 36.8 percent. The situation has relaxed, especially in automotive construction and chemical industry. Both are slightly below the average of the industry. In contrast, around 43 percent in mechanical engineering was still very high. In food industry and beverage manufacturers, the survey even shows an increase, but at a low level.

Service sector and trade weak

The situation in wholesale and retail is significantly worse. A good 61 percent or around half of the companies report on the lack of order here.

In the service sector, the lack of order increased by one percentage point. With 32.2 percent, however, it is lower compared to the other areas. It is currently particularly hard.

In the morning, the spring report of the “economy” with a new economic forecast is also pending. Shortly after the new Federal Government took office, the five -member council should also reduce its growth expectations for the current year. A month ago, the then Minister of Economics Robert Habeck (Greens) screwed down the government’s forecast.

After two years of recession in a row, the German economy is on the spot, the easy improvement in the lack of order should not be sufficient to change this.