In the manufacturing sector, the substantial order backlogs accumulated during the coronavirus pandemic have significantly diminished. There has been a consistent decline in incoming orders for several months, accompanied by a wave of cancellations nationwide.
Contrasting with the overall economic downturn, the retail sector is showing signs of resilience. According to information from the Mastercard SpendingPulse database, which includes data on credit cards, debit cards, and cash transactions, price-adjusted sales in retail have increased from the run-up to Christmas through to mid-January.
Germany’s economic output is expected to shrink in Q1 2024 amid declining demand across sectors, as per ifo Institute.
Manufacturing sees reduced order backlogs and increased cancellations.
In contrast, retail demonstrates resilience with rising sales, and private consumption shows slight growth at 2023’s end with potential further increases in early 2024.
The Ifo Institute’s analysis suggests that private consumption in Germany saw a slight increase at the end of 2023. Furthermore, there are indications of potential growth in private consumption during the first quarter of 2024.
“According to our current ifoCAST estimate, gross domestic product is likely to contract by a further 0.2 per cent,” said Timo Wollmershauser, head of forecasts at ifo. “Furthermore, a number of special factors are weighing on the German economy. These include high illness levels, rail strikes at Deutsche Bahn, and an unusually cold and snowy January. But there are a few rays of hope in private consumption.”
Fibre2Fashion News Desk (DP)
