hpo economic commentary, 2nd quarter 2023

What is the situation regarding industrial order intake?

After the corona-related forced breaks of the large industrial trade fairs, numerous international trade fairs could be held again in the last months. The hpo forecasting team visited various trade fairs in the course of spring and was able to hold numerous discussions with decision-makers from the industry. The mood was similar to what Christine Lagarde, President of the European Central Bank, said at the World Economic Forum (WEF) in January: “Not as bad as feared”.

Following the absence of the energy crisis in Europe and the lifting of the strict Corona measures in China, a sense of relief is noticeable among decision-makers in the industry. Sales remain at an encouraging level due to the still very high order backlog and the normalisation of the supply chain situation. The German Engineering Federation (VDMA) recently reported that its members are currently reporting an average order backlog that will allow them to operate at capacity for almost 12 months. This cushion is a positive sign.

Benjamin Boksberger, Josua Burkart