German industry sees worst slump in orders since 2009

The German economy is suffering from the worst recorded slump in orders since the 2009 financial crisis, a top economic institute suggested on Monday, reported dpa.

The Munich-based ifo Institute said 41.5% of German companies reported a lack of orders in October, up from 39.4% in the last survey in July.

The quarterly figure is higher than the institute recorded at any point during the coronavirus pandemic.

"The lack of orders is continuing to hinder economic development in Germany," said ifo economist Klaus Wohlrabe. "Hardly any industry has been spared."

Some sectors were hit harder than others, with almost half of manufacturing companies (47.7%) seeing a lack of orders.

Among companies manufacturing basic metals, 68.3% recorded a lack of orders, as did 59.9% of metal products manufacturers.

Germany's key automotive and chemical industries saw around 44% of businesses report a lack of orders.

The trade sector also recorded its highest rate of companies seeing a lack of orders since at least 2006, at 65.5%. Among retail companies, the figure was 56.4%.

The situation among service providers was somewhat better, with only 32.1% reporting a lack of orders, up from 31.2%.

Recruitment agencies were particularly badly hit, Wohlrabe said, because "temporary workers are less in demand."

In contrast, legal and tax consultants, as well as auditors, were more positive about their situation as a result of "high levels of bureaucracy and regulation," the institute said.