BERLIN (Reuters) – Fewer German engineering firms had a negative outlook in January compared with three months ago, according to a survey published by the VDMA industry lobby on Wednesday, but headwinds persisted in their home market as other regions pulled ahead.
Of the 1,021 companies surveyed, the number that expected their situation to deteriorate again in the next six months fell to 15% from 22% in October, the VDMA said in a statement.
The poll showed Germany lagging behind other regions in terms of sales prospects: Some 42% of companies viewed their current prospects in North America as good or very good, while in Germany, 54% saw them as poor or very poor.
“Germany as a business location is under enormous pressure and, moreover, other sales regions are seeing more growth and thus demand for mechanical engineering products,” VDMA chief economist Ralph Wiechers said in a statement.
The VDMA also flagged job cuts on the horizon: One in four companies planned to reduce its workforce in the next six months, while 60% said they expected it would remain the same size.
(Writing by Rachel More, Editing by Miranda Murray)
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