The production volume of Germany’s steel and metals working industries from January through September was 7.2% lower than in the first nine months of 2023, according to industry federation WSM.
Order intake in the first seven months was down 12.8% y-on-y, amid the ongoing economic dip, WSM notes, while utilisation of production facilities was 76.3% in July, Kallanish notes.
September reported a 6.7% year-on-year decrease, a less sharp fall than July’s 10.8% y-o-y decrease.
In August a poll by economic research firm ifo Institute reported 43% of companies in the sector predicted a decline over the next six months from an already modest level of business activity. Half of the respondents expected business to remain flat.
By June, the industry workforce had reduced by 8,700 y-on-y, which is around 2.4% of the former workforce, Kallanish understands.
In early October, WSM reported that 41% of its members would have to lay off further staff.
The federation’s managing director, Christian Vietmeyer continues to call on policymakers to take action against a further industrial deterioration, with a focus on tackling uncompetitive power prices in Germany.
He conceded that the ongoing political situation was also more challenging, after collapse of the current government, with new elections projected for early 2025.
Christian Koehl Germany
