In the first seven months of this year, German steel and metal processing companies saw their production decrease slightly by 0.8 percent compared to the same period last year, according to German steel and metal industry association WSM. German metal and steel companies' exports increased significantly by 8.3 percent in July, while price-adjusted sales to domestic customers were 4.4 percent lower compared to the same month of 2011.
Meanwhile, in the first seven months new orders for German steel and metal processing companies decreased by 4.1 percent year on year, while new orders from abroad fell by 1.7 percent, compared to January-July 2011.
The association said that the decisive factors are now no longer primarily the customer industries, but the regional target markets of the customers. While western and southern Europe in particular are becoming weaker, most other regions continue to develop dynamically.
According to WSM, the activity in the sector deteriorated further in August. Both the current business situation and the prospects for the next six months were judged more negative than in the previous month. This suggests that the second half of the year could be economically weak. In the medium term, however, WSM expects the stabilization of business and growing momentum in economic development. Overall, 11,000 new jobs were created in the German steel and metal processing sector in the first half of this year, an increase of around 2.5 percent year on year, while in July another 2,000 people were hired.