Recruit Sales in Germany Update Bullitin September 2025

GERMAN ECONOMIC INDICATORS September 2025

Germany's economic outlook for September 2025 suggests subdued growth and ongoing challenges, despite some signs of recovery and easing inflation. After a modest increase in the first quarter, economic momentum weakened again in the second. Structural headwinds – including geopolitical uncertainty and elevated energy costs, as well as stalled reforms – remain unresolved.

At the same time, Donald Trump’s return to the presidency and his renewed trade agenda are adding pressure on Germany’s export-driven industries. The labour market is also beginning to lose steam, with unemployment rising last month to a level not seen in a decade. Overall, the economic environment remains strained.

The weakness is most evident in Germany’s manufacturing sector. Industrial output fell sharply in June 2025, reaching its lowest level since May 2020. Compared to the same month last year, total production declined by 4.8%, with energy-intensive industries experiencing a contraction of up to 7.5%.

Particularly steep declines were recorded in mechanical engineering (–5.3% vs. the previous month), pharmaceuticals (–11.0%), and food production (–6.3%). The setback underscores the sustained pressure on the industry – especially in energy-intensive segments, where the still-high electricity prices are also putting extra pressure on profit margins.

Economic growth in Germany is expected, therefore, to remain subdued at just 0.2% in 2025.

Sentiment among German consumers is also expected to decline for the third consecutive month in September, with households' growing concerns about potential job losses and uncertainty about inflation weighing on their mood. The consumer sentiment index, published by leading market research institutes, declined to -23.6 points from a slightly downwardly revised -21.7 points the month before.

German Exports September 2025

The index of Export Expectations in Germany deteriorated in August 2025, falling to -3.6 points, from -0.3 points in July. “Disillusionment is spreading in the export business,” says a leading expert. Although a tariff rate of 15 per cent from the US is less than feared, it will nevertheless weaken export momentum.”

Food and beverage manufacturers took a significant hit as they moved into September, with the export outlook becoming noticeably gloomier.

Companies in metal production and processing also expect a decline in international sales moving forward. There is little movement in mechanical engineering. The same applies to manufacturers of data processing equipment. In the chemical industry, there is cautious optimism, with companies expecting exports to increase. That also applies to the furniture industry and manufacturers of electrical equipment.

Overall, German exports are projected to contract by 1.9% in 2025 and recover only partially in 2026.

Employment September 2025

Unemployment in Germany has been slowly creeping up since 2022, and the country now has three million unemployed people in September for the first time in a decade, as the labour market feels the effects of the country's sluggish economy. The stagnating economy is making companies act cautiously when it comes to personnel planning,

Some facts about Germany

Germany has a population of eighty-four million people.
Germany is the seventh-largest country in Europe, covering an area of 137,847 square miles, of which 34,836 square miles is land and 3,011 square miles contain water.
Germany's highly developed social market economy has a potential yet to be fully realised. According to the IMF, it accounts for about 28% of the euro area's economy, which speaks volumes about its strength and resilience.
With a gross domestic product of 4,121 billion euros in 2023, Germany is the third-largest economy in the world after the United States and China, making it the largest economy in Europe. Exports of motor vehicle parts and chemical products make Germany the third-largest export nation in the world. At 70%, the service sector accounts for the largest share of the country's gross domestic product.
Germany is one of the world’s premier locations for organising  international trade fairs. Two-thirds of the major global industrial shows/events take place in Germany, with around ten million visitors attending approximately 150 international trade fairs and exhibitions annually.
Germany is a top destination for investors, attracting an ever-increasing number of companies to make greenfield investments here. Germany is the largest economy in Europe, and its central European location entices its investors.

Summary

If you are looking to recruit experienced sales staff to capitalise on new or existing markets within Germany, the UK, Europe, or further afield, please get in touch with us for a no-obligation discussion.

NB Please note the information contained herein is an aggregate of news stories, by commentators widely available - readers should seek independent verification, and this in no way represents the views or opinions of Standley Associates.

We will continue to monitor news reports and provide monthly summaries of the trends.