Azernews.Az

By Alimat Aliyeva

More than a third of companies in Germany are grappling with a shortage of orders, with 36.7% of businesses facing this challenge in July. This is according to a public opinion survey conducted by the Ifo Institute, Azernews reports.

The shortage of orders remains a key barrier to a broader economic recovery in the country. The survey highlights that the percentage of businesses in the industrial sector experiencing order shortages has increased from 36.8% in April to 38.3% in July. Notably, the automotive industry has been hit particularly hard, with 42.6% of companies reporting a lack of orders. Manufacturers in mechanical engineering and electrical equipment have also been severely impacted. In the metallurgical industry, nearly half of the companies are facing similar issues.

In contrast, the situation in the service sector is somewhat less dire. The share of service-based companies reporting order shortages decreased from 32.3% to 29.9% over the same period. However, some industries within the sector still face significant challenges, such as temporary employment agencies, where the figure has risen to 56.3%. Similarly, the hotel sector, advertising agencies, and market research firms have all experienced an above-average shortage of orders.

In the wholesale sector, nearly two-thirds of businesses are complaining about a lack of orders, while in the retail sector, around 50% of companies are also reporting insufficient demand for their goods or services.

This persistent shortage of orders, particularly in key sectors like automotive and manufacturing, may reflect broader global supply chain issues, rising energy costs, and shifting demand patterns post-pandemic. It also suggests that Germany's industrial heartland is facing growing challenges as it transitions to a greener, more digital economy.