Following the significant increase in April, the seasonally and calendar-adjusted business climate in the German print and media industry fell slightly in May 2024. The decline in the business climate was largely determined by the decrease in business expectations, while the business situation index continued the recovery trend that began in February in May. Adjusted for seasonal and calendar effects, the business climate index calculated by the German Printing and Media Industries Federation was around 1.1 per cent below the previous month’s figure. At 91.5 points, the index in May was therefore around 0.5 per cent below the previous year’s level.
In May 2024, the decision-makers at printing and media companies surveyed by the ifo Institute assessed their current business situation more positively than in the previous month. The characteristics of the current and expected business situation determine the development of the business climate, which is a good leading indicator for production development in the print and media industry.
In May 2024, the seasonally and calendar-adjusted business situation index recorded an increase of 4.6 per cent compared to April, continuing its recovery. At around 11.6 per cent, the business situation index was above the annual low recorded in February. At 86.2 points, the index was around 2.7 per cent above the level at the start of 2024 for the first time, but still around 8.2 per cent below the corresponding figure from the previous year. Around 15 per cent of the company managers surveyed in the printing industry rated their current business situation as positive in May. 48 per cent rated their situation as neutral, while 38 per cent gave a negative assessment. The balance thus remains negative at -23 percentage points. Despite this slight improvement, the economic situation remains tense for many companies in the print and media industry. At 53 per cent, slightly more than half of those surveyed rate their current earnings situation as poor, 37 per cent as satisfactory and only 10 per cent as good. On balance, this represents a decline of 20 percentage points from -23 percentage points to -43 percentage points compared to the previous year’s survey. Compared to autumn 2023, around 8% of the company managers surveyed see an improvement in their earnings situation, 43% say the trend remains unchanged, while 49% report a deterioration in the earnings situation.
After brightening in April, expectations regarding the development of the business situation over the next 6 months fell again in May compared to the previous month. At 97.0 points, the seasonally and calendar-adjusted index was around 6.5 per cent below the previous month’s level and thus around 7.9 per cent above the value from May 2023. The majority of respondents (73 per cent) expect the business situation to move sideways over the next 6 months. Around 14 per cent forecast a deterioration, while 13 per cent expect the business situation to improve.
BVDM
The Bundesverband Druck und Medien e. V. (bvdm) is the umbrella organisation of the German printing industry. As an employers’ organisation, political business association and technical trade association, it represents the positions and objectives of the printing industry vis-à-vis politicians, administration, trade unions and the supplier industry. The bvdm is supported by eight regional associations. Internationally, it is organised through its membership of Intergraf and FESPA. The printing industry currently comprises around 6,900 predominantly small and medium-sized companies with more than 110,000 employees subject to social security contributions.
