Lack of orders is depressing the German economy: almost every second company is affected!

Lack of orders is depressing the German economy: almost every second company is affected!

The German economy is on the brink! An alarming lack of orders, the worst since the 2009 financial crisis, is affecting companies. According to a recent survey by the Munich Ifo Institute, 41.5 percent of companies complained about a lack of orders in October - an increase from 39.4 percent in July. This worrying development is slowing down economic momentum and affects almost every industry, as the Ifo Institute emphasizes. The situation is particularly dramatic in industry, where almost every second company is affected by a decline in new business Deutschlandfunk reported.

The effects are devastating! There is great concern in the mechanical engineering and electrical industries. Klaus Wohlrabe, head of the Ifo surveys, warns: "The lack of orders continues to hamper economic development in Germany. Hardly any industry is spared." The transport sector is also suffering from the poor industrial economy, and two thirds of recruitment agencies are reporting a dramatic decline in orders. In the catering industry, over a third of businesses have too few guests, which further exacerbates the situation.

Industries in crisis mode

The numbers are alarming! In October, the proportion of service providers complaining about a lack of orders rose slightly from 31.2 to 32.1 percent. The events industry is particularly affected, where 48.5 percent of companies report too few orders - an increase of 10 percent since July. “The major events have certainly taken away some purchasing power for smaller concerts and events,” explains Wohlrabe. The shadows of big stars like Taylor Swift and Adele cast their shadows on the smaller stages.

A ray of hope? Wohlrabe sees the increase in order backlogs in September as a glimmer of hope, but he warns: “There is still a long way to go before the books are full again.” Uncertainty remains high and companies have to prepare for a tough time. While some industries are suffering, legal and tax advisors and auditors have fewer worries. High levels of bureaucracy and regulation ensure that demand for advice continues to be high World reported.

The future of the German economy

The situation is serious and requires quick action! Companies are faced with the challenge of improving their order situation and adapting to changing market conditions. Uncertainty about economic development remains high, and the question of how long this lack of orders will last hangs over the German economy like a sword of Damocles. The coming months will be crucial to see whether the situation can stabilize or whether the crisis will continue to escalate.