Germany faces growing economic challenges as order shortages worsen

Germany's economy is facing increasing challenges as the order shortage worsens, according to the latest data from the ifo Institute. In July, 39.4 per cent of companies reported a lack of orders, a rise from 38.4 per cent in April.

The manufacturing sector has been particularly hard hit, with the percentage of companies reporting insufficient orders increasing from 39.5 per cent in April to 43.6 per cent in July.

In the textile manufacturing sector, a substantial 66.5 per cent of companies reported a lack of orders, indicating significant strain on this segment. Similarly, 32.7 per cent of companies in the wearing apparel manufacturing sector also reported a shortage of orders, as per the ifo Institute.

“The lack of orders is weighing on economic development in Germany. Almost every industry is affected,” said Klaus Wohlrabe, head of Surveys at ifo.

ALCHEMPro News Desk (DP)