May 2019 Recruiting in Germany Bulletin

Recruiting in Germany Bulletin

Welcome to our May 2019 Recruiting in Germany Bulletin. This latest update indicates continued demand for key skills in Germany, and we highlight some of the economic key trends leading commentators are predicting.

If you are looking to recruit experienced sales staff to enable you to exploit new or existing markets within Germany, the UK, Europe or further afield, please call us for a no-obligation discussion.

Economic Commentary - what they are saying

GERMAN ECONOMIC INDICATORS May 2019

The Ifo institute said its closely watched business “climate” index fell to 97.9 in May 2019. This was the lowest reading since November 2014 and missed the forecasted reading of 99.1.

It went on to lead economists to suggest a slowdown in manufacturing was starting to spill over to some business services like transport and logistics firms, that depend on contracts from industrial companies, reporting declines in confidence.

However, signs that the worst may be over for German manufacturers were evident in a slower contraction in output, new orders and export sales, the survey showed

That said whilst business morale in wholesale trade was slower – retailers were very much more upbeat about the business outlook – suggesting consumer spending remains robust with domestic demand remaining strong. German shoppers are benefiting from low borrowing costs and high levels of employment within an environment of inflation-busting pay rises.

Furthermore, a construction boom and solid export results are helping underpin a solid performance of business results is helping keep the economy on track.

Meanwhile, the inflation rate in Germany is expected to fall to 1.4 per cent year-on-year in May of 2019 from a five-month high of 2 per cent in the previous month and below market consensus of 1.6 per cent.

On a monthly basis, consumer prices are set to went up by 0.2 per cent in May, following a 1 per cent jump in April and below market forecasts of 0.3 per cent.

The German Government

The recent 2019 European Parliament election was the first national election to be held in Germany since the 2017 federal election, in which Chancellor Angela Merkel's ruling coalition between the Christian Democrats and Social Democrats suffered major losses, while the right-wing, Eurosceptic party Alternative for Germany (AfD) entered parliament in third place.

In 2018, the Greens and the AfD made large gains in state elections in Bavaria and Hesse, with the Greens moving into second place in each, whilst the Christian Democrats and Social Democrats each suffered 10+ point swings. Federal polling saw the Greens take a consistent lead over the SPD since October.

Compiled by SA in May 2019 from various news sources

*Please note the information contained herein is an aggregate of news stories, by commentators widely available - readers should seek independent verification, and this in no way represents the views or opinions of Standley Associates.