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Cancellations Hit One In Five Residential Construction Companies In Germany
Cancellations in German residential construction have increased, with 19.6% companies reporting canceled orders. In February, the figure was 17.7%. “The situation in residential construction remains tense,” explains ifo-expert Klaus Wohlrabe. “There aren’t enough new orders to offset the cancellations.”
ifo Price Expectations Rise Slightly
The ifo price expectations for companies in Germany rose a little to 15.1 points in April, up from 14.3 in March. “Inflation is unlikely to fall any further in the coming months and is set to remain at just over 2%,” says ifo-expert Sascha Möhrle.
Right-Wing Populist Voters Favor Dismantling The Welfare State
Voters of right-wing populist parties are increasingly in favor of dismantling the welfare state in order to be able to compete with other countries. “The right-wing populist spectrum sees the welfare state as a form of redistribution towards immigrants,” explains Marcel Thum, Director of the ifo Institute’s Dresden Branch.
ifo Schnelldienst 5/2024 Is Out: Europe 2024
On June 9th, EU citizens will elect a new European Parliament. Shortly thereafter, a new EU Commission will also commence. In the new issue of the ifo Schnelldienst, "Europe 2024 - Setting the Course for Sustainable and Successful Economic Development", authors discuss topics for a new EU agenda.
How Can Companies Integrate AI Meaningfully Into Business Models?
AI will change many things in the future, including companies' business models. The question is how companies can use it to stay ahead of the competition. And where can Europe achieve a leading global position? Discuss this topic with Nicole Büttner, CEO of the AI company Merantix Momentum, live on site at the MED or online.
ifo Employment Barometer Rises
The willingness among companies in Germany to hire new staff has increased slightly. The ifo Employment Barometer rose to 96.3 points in May, up from 96.0 points in April. “Demand for workers remains rather weak,” notes Klaus Wohlrabe, Head of Surveys at ifo.
Covid-19 Economic Assistance In Bavaria Reached All Affected Industries
In Bavaria, Covid-19 bridging aid was received mainly by the many smaller companies with fewer than 50 employees and in those industries particularly affected by the pandemic, finds a study by the ifo commissioned by Chamber of Commerece and Industry (IHK) for Munich and Upper Bavaria.
Availability of Materials in Germany Approaching Pre-coronavirus Levels
German manufacturers hardly have to struggle with material shortages anymore. In March, 10.2% of the companies surveyed reported shortages, down from 14.6% in February. “The supply of raw materials and intermediate products has recently seen significant improvement,” notes ifo-expert Klaus Wohlrabe.
Business Climate In German Retail Improves Again
The ifo Business Climate in retail brightened further in April and rose to -14.5 points, up from -17.5 in March. Assessments of the current business situation improved significantly. Retailers’ business expectations also became somewhat more optimistic, but remain largely cautious.
Business Climate In the German Automotive Industry On The Upswing
According to the ifo Business Survey, the indicator in March rose to -5.8 points, up from -9.9 points in February. “The German automotive industry seems to have finally emerged from its economic low in the second half of 2023 and is looking to the future with more confidence,” ifo-expert Anita Wölfl notes.
Business Climate Of The Self-Employed In Germany Improved
The business climate for solo self-employed and microenterprises in Germany improved somewhat in April, climbing to -13.8 points after -15.6 in March. Dissatisfaction with current business has decreased slightly, as has skepticism regarding expectations for the next six months. The signal coming from service providers is particularly positive.
EU Accession Country Workers Fill German Labor Market Gaps
Exactly 20 years after accession to the EU, approximately 820,000 workers from these ten countries are now employed in Germany. That accounts for 2.4% of the German workforce. “Contrary to the fears of many, this has not led to German workers being pushed out of the labor market,” notes Joachim Ragnitz, Managing Director of ifo Dresden.
ifo Researcher Potrafke Critical of Germany’s Pension Package
“Freezing the pension level at 48% and suspending the sustainability factor completely ignores the realities in Germany," criticizes ifo researcher Niklas Potrafke regarding the pension package recently adopted by the German government. Demographic change requires a different pension policy.
Lack Of Orders Slows Down The German Economy
The order shortage in Germany has worsened and is an obstacle to the economy. In April, 39.5% of manufacturing companies reported a lack of orders, up from 36.9% in January. In the service sector, the proportion rose from 32.1% to 32.4%. “The lack of orders is hampering economic development in Germany,” explains Klaus Wohlrabe.
Business Climate in the German Chemical Industry Brightens
The business climate in Germany’s chemical industry improved in March, with the index rising to -10.5 points, up from minus 15.5 points in February. Especially business expectations improved sharply to -2.9 points, up from minus 14.9 points in February.
Business Climate Eastern Germany Rises a Second Time in a Row
The ifo Business Climate Index Eastern Germany rose considerably in April from 90.2 in March to 92.3 points. The eastern German companies surveyed provided assessments of their business situation that were somewhat better than the previous month, and they raised their business expectations substantially.
Parenthood Increases Inequality Between Women And Men In Germany
Inequality in the labor market between men and women in Germany is at its greatest when there are children involved, finds an international research group. Among 30-year-olds, mothers earn on average 70 to 80% less than fathers, whereas the difference is less than 5% for childless people of the same age.
ifo Business Climate Index Rises (April 2024)
Sentiment has improved at companies in Germany. The ifo Business Climate Index rose to 89.4 points in April, up from 87.9 points1 in March. This is its third consecutive rise. Companies were more satisfied with their current business. Their expectations also brightened. The economy is stabilizing, especially thanks to service providers.
Half Of Germany’s Residential Construction Companies Are Short On Orders
Residential construction in Germany is experiencing an order shortage. More than half the companies, 55.2%, in this industry reported a lack of orders in April. In March, the figure was 56.2%. “Housebuilders are looking for signs of hope,” notes Klaus Wohlrabe, “but there’s no end to the crisis in sight.”