Weakening in industry
Production and new orders are falling strongly in the industrial sector. Companies fear a recession.
The PMI index for industry, which depicts the business climate in the sector, came in at only 42.1 points from July. A month ago it was 2.3 points higher. It is now at its lowest level since May 2020. It reflects a sharp decline in production and new orders. This is a result of high inflation and weaker demand due to the uncertain economic situation. Companies are also reducing the number of employees for the second month in a row. Price pressures continue to rise, as do production costs and finished goods prices.
Entrepreneurs are worried about a recession. At the same time, however, they see upward pressure on prices decreasing. According to economists, inflation should stabilize by the end of the year.