German steel and metals working industries’ forecasts have improved somewhat for the coming months, according to their representative association, Wirtschaftsverband Stahl- und Metallbearbeitung (WSM).
In fact, it is more a case of last year’s pessimism waning. While polls carried out in December and January were similar in their negative assessment of current business, the outlook for the following six months pointed at a silver lining. In December, 45% of companies still expected a further slowdown of business; that share sunk to 33% in January.
A more recent poll provided to Kallanish upon request confirms the more hopeful trend. In WSM’s March poll, the share of respondents fearing further deterioration came down to 21%.
In 2024, production at German steel and metals fabricators was 6.7% lower than in 2023, WSM cites from figures provided by the Federal Statistics Office. Order intake figures were even worse, with a year-on-year drop of 13.4% in December and 11.5% in January, seemingly hinting at further production drops ahead.
“Some more difficult months will have to be faced,” says WSM economist Holger Ade. He believes companies prefer to assume the market floor has been reached. One positive factor is the incoming federal government, which has pledged to support economic development. This, however, comes amid an erratic US trade policy that could hurt the German economy.
