{{else if Image}}
{{else if Image}}
{{/if}}
{{/if}}
3/12/2024
Markets & Industries
News
ArGeZ: "Suppliers Start Poorly into a Challenging Year"
The supplier industry business climate for German suppliers has declined once again. After dropping by 2.7 points, the ifo index in February stands at -27.9 points. The mood among companies was last this low under the impact of the pandemic in June 2020.
The current situation of German suppliers is increasingly deteriorating, says the German Supplier Industry Working Group (ArGeZ). In February, companies also recorded a worsening from the previous month. The seasonally adjusted balance of good-bad evaluations is now at -21.5 points, thus the downturn, which began at a high level in the summer of 2021, continues almost unabated.
Besides this negative picture, it is particularly concerning that the downward trend has recently gained momentum. The assessment of the situation has recently dropped by a significant 4.6 balance points. Meanwhile, expectations for the next six months also provide no cause for joy, according to ArGeZ. On one hand, they record a balance value of -34.0 points below the situation assessment in February, and on the other hand, the recent decline by 0.8 balance points does not indicate an imminent turnaround.
Besides this negative picture, it is particularly concerning that the downward trend has recently gained momentum. The assessment of the situation has recently dropped by a significant 4.6 balance points. Meanwhile, expectations for the next six months also provide no cause for joy, according to ArGeZ. On one hand, they record a balance value of -34.0 points below the situation assessment in February, and on the other hand, the recent decline by 0.8 balance points does not indicate an imminent turnaround.
Sideways Movement in Domestic Car Production
A look at vehicle manufacturing, as the most important customer industry, underlines the negative attitude of the medium-sized supplier industries. Experts from the VDA forecast a sideways movement in domestic car production for the year 2024. While a growth of 25 percent is expected for BEVs, this should lead to a further reduction of up to 7 percent in volumes for other types of drives.
The economic forecasts by economic research institutes and the federal government itself also provide no reason for optimism. The BMWK recently revised the GDP forecast for the year 2024 from once 1.3 percent to 0.2 percent significantly downwards.
A look at vehicle manufacturing, as the most important customer industry, underlines the negative attitude of the medium-sized supplier industries. Experts from the VDA forecast a sideways movement in domestic car production for the year 2024. While a growth of 25 percent is expected for BEVs, this should lead to a further reduction of up to 7 percent in volumes for other types of drives.
The economic forecasts by economic research institutes and the federal government itself also provide no reason for optimism. The BMWK recently revised the GDP forecast for the year 2024 from once 1.3 percent to 0.2 percent significantly downwards.
