Nearly three in five German industry associations are pessimistic about next year and expect their companies to produce less as high energy prices due to the war in Ukraine show no signs of abating, according to a survey published on Tuesday.
Of the 49 associations surveyed by the IW economic institute, 30 said they expect their members to produce less, while 13 said they expect their sectors to produce more.
Almost 40 associations said that the current situation of their companies is worse than a year ago, when many assumed that the worst of the coronavirus pandemic had been largely overcome.
However, with inflation at record highs, the mood of the German economy has not recovered, according to the survey, conducted between mid-November and early December.
“Companies do not expect high energy prices to return to pre-crisis levels in the foreseeable future. That greatly clouds the outlook for next year,” said IW economic expert Michael Groemling.
He warned that the situation of energy-intensive enterprises is particularly precarious and their success is linked to affordable energy.