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,” says Klaus Wohlrabe, Head of Surveys at ifo. “Almost all industries are affected.”

In manufacturing, energy-intensive industries are the hardest hit. In the paper industry, the proportion is 53.9%, in basic metals manufacturing it is 50.6%, and in the chemical industry it is 46.6%. On the other hand, only a few beverage manufacturers mention a lack of orders (14.3%).

Among service providers, it is primarily recruitment agencies (63.9%) that have too few orders. “The fact that economic development is weak across the board is reducing the demand for temporary workers,” Wohlrabe says. In hospitality, 36.9% of businesses report a lack of guests. In the event industry, the figure is 45.5%. “Especially smaller providers, whose focus isn’t on major events, could comfortably take on more work,” Wohlrabe says. “The logistics industry is lacking transport orders from manufacturers in particular.”