Overview

• A Zentralverband des Deutschen Handwerks survey shows the first positive business outlook for German craft firms since early 2023.
• Nearly 23,000 firms reported slightly worse current conditions compared to last year, citing weak housing construction, low consumer spending, and export challenges.
• Firms anticipate a housing sector recovery by late 2025, supported by infrastructure investments and rising construction costs.
• Optimism is tied to expectations of reduced bureaucracy, stable energy prices, and investment-friendly policies from the black-red coalition government.
• Craft leaders warn that without swift policy action, this fragile confidence could quickly erode, jeopardizing the sector's recovery hopes.