Overview
- The sector’s business climate index fell to −19.4 in October from −12.0 in September, with expectations sliding to −13.3 and the current situation at −25.3, according to the ifo-Institut.
- Order backlogs were assessed at −68.9, the weakest reading in more than three decades, signaling sharply reduced near-term demand.
- Capacity utilization dropped to 71%, well below the 10-year average of 81%, pointing to significant underuse of plant and equipment.
- Ifo reported that price plans turned clearly negative as foreign competition intensified, while companies saw no near-term boost from exports.
- VCI highlighted regulatory burdens as a growing handicap, noted revenues fell 2.9% from January to August, and projected roughly a 2% production decline for 2025 with North American sales hurt by new U.S. tariffs.