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Lack of orders weighs on German economy – Ifo
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BERLIN (Reuters) – The lack of orders in manufacturing is increasingly becoming a burden on the German economy, the Ifo Institute said on Monday.
BERLIN (Reuters) – The lack of orders in manufacturing is increasingly becoming a burden on the German economy, the Ifo Institute said on Monday.
In January, 36.9% of manufacturing companies reported a lack of orders, up from 36.0% in October, according to Ifo’s surveys. A year ago, the proportion was just 20.9%.
“The lack of orders has worsened noticeably over the past year. Hardly an industry has been spared,” said Klaus Wohlrabe, head of surveys at Ifo. “What’s more, order backlogs are shrinking.”
In the service sector, 32.1% of the companies reported a lack of orders in January.
(Reporting by Maria Martinez, Editing by Rachel More)
Manufacturing is the process of converting raw materials into finished goods through the use of labor, machinery, and tools, typically on a large scale.
Unemployment refers to the situation where individuals who are capable of working are unable to find a job despite actively seeking employment.
An economic survey is a systematic collection of data regarding economic activities, often used to assess the performance of various sectors within an economy.
Order backlogs refer to the accumulation of orders that have been received but not yet fulfilled, indicating demand that exceeds current production capacity.
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