One in three companies in Germany is struggling with a shortage of orders

Brussels – About one in three companies in Germany is receiving too few orders. The percentage dropped slightly from 37.8 percent (pct) in July to 36.9 pct in October, but is still well above the long-term average. “The way out of the order slump is still long,” says Klaus Wohlrabe, head of surveys at Munich Research Institute ifo. “The lack of orders may result from weak demand due to the economic situation, but also from excessive costs and hence a lack of price competitiveness among the companies.” 

In industry, the share of companies lacking orders fell from 38.0 pct in July to 35.5 pct in October. The automotive sector, in particular, is breathing a sigh of relief: after 38.7 pct in July, now 29.5 pct of companies are now lacking orders. However, the situation remains complicated in the metal and paper industry (around 44 pct in both cases). In the chemical industry, the percentage increased by about five percentage points to 39.1 pct. 

Service providers reported a lack of orders somewhat more frequently, with the share rising from 31.4 pct to 33.6 pct. Temporary employment agencies are particularly affected (64 pct). The lack of orders is also higher than average in the hospitality sector (52.4 pct) and among advertising and market research agencies (54.8 pct). 

The situation remains difficult in trade: almost two-thirds (61.9 pct) of wholesalers reported a lack of orders, down slightly from the previous quarter (64.9 pct). The situation improved only minimally among retailers: the share dropped from 52.1 to 48.4 pct,  indicating that about one in two companies continue to report insufficient demand.