DIHK Economic Survey February 2019
The Association of German Chambers of Commerce and Industry (DIHK) is presenting the results of its Economic Survey February 2019 with the analysis “Outlook darkens”.
Business situation: Companies are again rating their business situation worse than before, but still at a high level. Manufacturing industry is showing clearer signs of slowing down. Large and export-oriented companies in the manufacturing sector in particular are experiencing a slowdown in their business. On the other hand, the construction industry, as well as retailers and service providers, are reporting good business.
Business expectations are significantly worse in all sectors of the economy. Concerns about domestic and foreign demand are growing noticeably. The economic policy framework conditions are also increasingly becoming a risk factor from the point of view of companies. Global trade conflicts are slowing down business developments – especially in the manufacturing industry. The greatest risk remains the short age of skilled workers.
Export expectations: For the third time in succession, manufacturing industry‘s export expectations are declining significantly. The balance is now well below the long-term average and lower than at any time since 2012. The proportion of companies expecting poorer export business has doubled within a year.
Investment intentions: The pace of investment is slowing to a significant extent. At the same time, the proportion of companies that are reducing their budgets is increasing. Industrial companies in particular are significantly reducing their investment intentions. An obstacle to enlargement may not least be the continuing shortage of skilled labour and increased concern about the development of labour costs.
Employment intentions of enterprises have slightly declined for the third time in a row. The recruitment intentions of manufacturing industry are falling particularly sharply, while service providers are even looking for more personnel. Especially in times when skilled workers are scarce, companies have a strategic interest in finding and retaining good personnel.
The current survey can be downloaded below:
Pages: 44 pages | File size: 2.1 MB