Executives surveyed in September reported a significant deterioration in the economic situation compared to August. The seasonally and calendar-adjusted index fell by 4.8% to 80.6 points, down 9.3% year-on-year. Only 9% of companies consider their current situation to be positive, while 42% consider it to be negative. This imbalance is partly due to excess capacity in the market and strong competition, which have a direct impact on profitability. The balance of earnings has fallen by 11 points compared with September 2023, reaching -47%, indicating that profitability remains in a distinctly negative zone.
The six-month expectations index, which had shown improvement in the previous two months, declined in September 2024. At 99.9 points, the index is down 6.9% on the previous month, although it remains 7.6% above the previous year's level. Employment Outlooks also continue to deteriorate, with a negative balance of -26 points, down 7 points from September 2023.
The main challenge facing companies in this sector remains the fierce competition in a market with overcapacity. This situation, combined with flagging profitability, could lead to downsizing and production contraction in the months ahead. While some 55% of companies expect their business to stabilize, 36% anticipate a deterioration, reflecting the continuing uncertainty within the industry.
As Germany's printing industry continues to face major economic challenges, the coming months promise to be decisive. Companies will need to find ways of adapting to a rapidly changing market, while managing competitive pressure and protecting their margins. Technological developments and changes in consumer habits will be key factors to watch as the future of the sector unfolds.
