The business climate of the German supplier industry collapsed in March. While the current situation was rated worse, expectations for the next six months have dropped massively. The index has dropped to its lowest level since August 2009.
Some customers in the supplier industry, particularly the OEMs, have already stopped their production in Europe as a result of the spread of the new corona virus, the associated protective measures and the slump in demand and have registered short-time work. This hits the German supplier industry hard. The extent of the consequences of the pandemic can hardly be predicted and depends primarily on the length and scope of the health protection measures. Solidarity, partnerships and concrete support from the state are essential in order to survive the times of crisis and master the operational challenges.
The business climate index for the supplier industry is determined by the ArGeZ Working Group for the Supplier Industry in cooperation with the Ifo Institute, Munich. It is based on the survey of around 600 companies and covers the foundry industry, aluminum industry, plastics processing, steel and metal processing, non-ferrous metal industry, rubber industry and technical textiles that are part of the supply industry working group.
The chart, with corrected seasonally adjusted data, is available for download at www.argez.de.