DIHK Economic Survey: Decline in Growth Forecast but also Improvement in Economic Expectations

06/11/2013

According to the latest DIHK economic survey regarding the economic situation and expectations in May 2013, economic recovery in Germany has been slightly postponed. As a consequence, the former more positive growth forecast of 0.7 percent was lowered to 0.3 percent. The situation has deteriorated considerably in the construction and transport sectors and for consumer oriented service providers. The unusually harsh and long winter is seen as a factor, along with the overall slow recovery within Europe. Fortunately, due to increasingly positive expectations in all sectors, there are signs for a renewed economic upswing later this year.

Uncertainty remains, especially about foreign demand, and companies are cautious concerning investment plans. The overall improved expectations are not yet reflected in larger investment intentions. This is mainly due to the remaining uncertainties in the light of the euro debt crisis and discussions about tax hikes.

The DIHK economic survey also indicates that companies’ recruitment plans remain stable with a slight growth. As a result, employment numbers are increasing slightly faster than the economy as a whole. The survey can be found here.