The story of Germany\u2019s industrial weakness should be well known by now: cyclical headwinds, such as US tariffs and the stronger euro exchange rate, combined with structural challenges like higher energy prices, geopolitical shifts, and the changed role of China in the global economy, have created the perfect storm for German industry.<\/p>\n
And while it won\u2019t be easy to solve the structural challenges \u2013 definitely not quickly \u2013 there are at least tentative signs of a bottoming out. Industrial orders have now increased for two months in a row, inventories have come down somewhat, and capacity utilisation has started to turn. Admittedly, all of these signs are still very tentative and weak. However, let\u2019s not forget that the German parliament only signed off on the 2026 budget a few weeks ago and that the announced fiscal stimulus will only gradually unfold. Add to this the announced reduction of energy prices for industry, and at least a cyclical rebound in industrial activity should be in the making. Even if, particularly in the German case, any cyclical rebound should definitely not be mistaken for a structural improvement.<\/p>\n","protected":false},"excerpt":{"rendered":"The story of Germany\u2019s industrial weakness should be well known by now: cyclical headwinds, such as US tariffs…\n","protected":false},"author":2,"featured_media":174651,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":["post-174650","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/174650","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=174650"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/174650\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/174651"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=174650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=174650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=174650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}