Economic alarm in the skilled trades

3.000 craft businesses from northern Rhineland-Palatinate report on their economic situation: The overall index falls for the fourth time in a row – this has never happened before in 36 years of the economic survey!

Since the Koblenz Chamber of Skilled Crafts' (HwK) spring economic report in 2022, the economy has been declining gradually – a warning sign, as this is unprecedented since data collection began on 3.000 craft businesses! "We are not experiencing the major downturns like after the 2008 banking crisis or the outbreak of the coronavirus in 2020. This is a moderate but continuous downward trend that aligns with the overall state of the German economy. The warning signs are unmistakable," summarize Kurt Krautscheid and Ralf Hellrich. The report's relevant data has been collected in its current format since 1990, thus allowing for valuable comparisons.

Geopolitical tensions, military conflicts, and the resulting rise in energy prices, supply delays, and further uncertainty in global markets are severely impacting the economy, and the effects are also being felt in the skilled trades. According to a recent survey, business sentiment has reached a four-year low. For the current economic report, 75 percent (previous year's figures in parentheses: 78 percent) of the surveyed craft businesses report a good or satisfactory business situation. Key economic indicators such as order intake and sales figures are declining. 80 percent (67 percent) of respondents report higher purchase prices, while only 38 percent (38 percent) report higher selling prices. Looking ahead, 78 percent (56 percent) of businesses expect higher purchase prices, and 51 percent (38 percent) plan to increase their selling prices.

Background: Economic Report Background The full report can be read online here.

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