September 2018 Recruiting in Germany Bulletin
Listed Under: News & Bulletins
Recruiting in Germany Bulletin - September 2018
Welcome to our September 2018 Recruiting in Germany Bulletin. This latest update indicates a continued demand for key skills in Germany, and we highlight some of the economic key trends leading commentators are predicting.
If you are looking to recruit experienced sales staff to enable you to exploit new or existing markets within Germany, the UK, Europe or further afield, please call us for a no-obligation discussion.
Economic Commentary - what they are saying
GERMAN ECONOMIC INDICATORS in September 2018
The Ifo Business Climate Index for Germany fell 0.2 points from a month earlier to 103.7, still beating market expectations of 103.2.Moving forward the gauge of future expectations declined 0.3 points to 101 and the current business conditions sub-index moved down 0.1 points to 106.4.
Sentiment slightly deteriorated among manufacturers, but interestingly seemed to improve among service providers, wholesalers & retailers and constructors. In construction, business sentiment reached another record high. "Contractors reported a steady stream of incoming orders “.
Analysts are sticking to their forecast of around 0.5% quarterly GDP growth in both Q3 and Q4 2018, following an average growth of 0.4% in the first half year of 2019.
All in all, the German economy continues to develop, but there are signs of some change. Unused economic capacities are gradually shrinking, leading to a slight loss of economic impetus.
The general pace of economic expansion, however, continues to remain positive: any upturn in the world economy will continue to stimulate German exports despite the continued threats from embargos from the United States, and the domestic economy is also expected to remain buoyant thanks to the exceptionally favourable situation in the labour market.
It is predicted by many commentators the inflation rate is likely to rise gradually from 1.7 per cent for the whole of 2018 to date to 1.9 per cent in 2019.
Sentiment among German exporters seems to be improving. The ifo Export Expectations in manufacturing rose slightly. The truce worked out in the customs and trade conflict has led to improved confidence among German exporters, especially car manufacturers.
After the sharp decline in July, export expectations in the German auto industry recovered significantly. Now that the threat of customs increases has been momentarily averted, car makers are planning to export more again.
It is anticipated an increase in exports is also expected by pharmaceutical companies and by producers of printed products.
A more muted sentiment, however, was evident in the metal industry, the electrical industry and mechanical engineering.With the same applying to the textile and clothing industry.
The German Government
In the run-up to the informal meeting of EU leaders in Salzburg, Chancellor Angela Merkel and Austrian Chancellor Sebastian Kurz met to discuss the current European agenda. Migration and Brexit were the focal issues of their meeting in Berlin.
Compiled by Standley Associates September 2018