Economic crisis is putting a strain on Bavarian crafts: declining sales and order backlogs are falling

Economic crisis is putting a strain on Bavarian crafts: declining sales and order backlogs are falling

According to a report by www.bild.de, the craft sector in Bavaria is suffering from a weak economy. Last year, the 209,500 companies recorded a decline in sales of around four percent, adjusted for inflation. This is the sharpest decline in the craft sector since the financial crisis of 2008/2009. The Chamber of Crafts states that most companies still assess the situation as more or less adequate, but the real loss of sales is worrying.

The effects of the economic crisis on the craft sector could be diverse. Less sales could lead to job losses, which could hurt the local economy and increase unemployment. In addition, bankruptcies in the industry could increase, which could impact the supply chain and consumers. The federal government's focus on the economy is seen as necessary in order to support the skilled trades and stimulate the economy.

The change in companies' order backlogs could also have an impact on the market. A lower average of 8.6 weeks could indicate an uncertain future, which could lead to companies being more cautious about investments and new hiring. The decline in jobs (0.8 percent less than last year) could also impact consumption and investment as there is less disposable income. This could lead to further economic challenges.

Overall, it shows that the weak economy in the craft sector in Bavaria could have far-reaching effects on the economy and the labor market. The federal government could play a key role in addressing these challenges by taking measures to support the craft sector and stimulate the economy. It is important to keep an eye on developments in this area in order to take possible countermeasures in a timely manner.