German Businesses Struggle to Gain Momentum, Survey Shows

(Bloomberg) -- The German economy is failing to break out of stagnation as the current business climate is poor, with the manufacturing sector particularly weak, according to a survey of 24,000 companies by industry lobby DIHK.

Most Read from Bloomberg

“The hope of recent months that good international business or a pickup in domestic demand could act as a motor for domestic companies has not been confirmed,” DIHK Managing Director Martin Wansleben said on Thursday in a statement.

He added: “A weak domestic economy and tangible structural challenges continue to hold the economy in check.”

Only 28% of the companies polled rate their business situation as positive — compared with 29% at the start of the year — while 23% rate it as poor, up from 22%.

Just a quarter of companies are planning to increase their investments, while 31% of executives say they will have to cut back. The proportion of businesses planning to expand their capacity was only lower during the financial crisis and in 2003.

Most Read from Bloomberg Businessweek

©2024 Bloomberg L.P.