In the summer of 2015, northern Germany’s economy looks back at a positive first half year, with growth in turnover and orders. The outlook for the rest of this year is characterised by “mild optimism”, according to the Confederation of Business Associations in Hamburg and Schleswig-Holstein (UVNord). More than one in three companies is expecting order levels to continue to rise until the end of September. Risk factors for ongoing economic development, however, will also grow – for example from the financial crisis and in particular the Euro crisis.The job market is very stable.
This was the summary of UVNord’s summer business survey, as delivered by the organisation’s president, Uli Wachholtz, at the association’s summer press conference. The general findings of the summer survey demonstrate that northern Germany’s has performed well so far this year. 40 percent of companies surveyed reported growth in turnover for the first half of the year. For 27 percent, turnover decreased in real terms. Order levels also rose in the first half of 2015 for 40 percent of companies surveyed.
Order books are full
Investment behaviour is restrained. Whilst it is true that 24 percent of companies surveyed want to increase investment from last year’s level, some 29 percent want to reduce their investment level. Order expectations between now and the end of September 2015 are positive: 34 percent of companies surveyed except orders to increase, 51 percent expect them to remain stable, and only 15 percent expect orders to decline.
The situation varies between industries. Whilst the chemical, food, and service industries reported positive figures and strong expectations, the metal and electronics industry, along with the construction sector, has seen a worsening of the situation.
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