Overview
- An IW survey shows 36% of German companies plan to cut jobs in 2026, including 41% of industrial firms, while only 18% expect to hire.
- Investment plans weaken further, with just 23% of firms intending to spend more next year versus 33% planning to cut budgets.
- VDMA reports September machinery orders fell 19% year over year, with export orders down 24%, and now forecasts a 5% production decline for 2025.
- Auto suppliers face intensifying strain, with consultancy data citing 41 large insolvencies in 2025 and major workforce reductions announced at Webasto, ZF and Bosch.
- Regional sentiment diverges, with relative optimism in northern states and Bavaria, pessimism in the northeast, and a government forecast of 1.3% GDP growth for 2026 at odds with business surveys.