German Economic Recovery – Personnel Directors, Manufacturers Express Hope

According to a recent survey by the Ifo institute and Randstad, personnel directors at German firms have turned optimistic about a rise in wages this year, a sign of improving economic conditions. Over 25% of executives expect wages to increase by more than 2% while around 30% of respondents anticipate a rise by up to 2%.

In addition, around 41% of respondents expected wages to remain unchanged through 2021. Researcher at Ifo, Przemyslaw Brandt, attributes the possibility of wage increase to the high demand for skilled labors, despite the ongoing coronavirus pandemic. Brandt expects skilled workers to see their wages rise this year to a higher extent than that of unskilled labor.

There are also more signs of hope for the German economy, with manufacturers across the country expressing interest in hiking production. Manufacturing production expectations rose sharply among auto manufacturers and their suppliers, as well as among computer and chemical manufacturers.

The sentiment remains most subdued among manufacturers of clothing goods, but the level of pessimism has improved since January. However, furniture manufacturers across Germany experienced a decline in their mood, turning more pessimistic about their production expectations.

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Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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