According to German steel and metal industry association WSM, German steel and metal processing companies saw their production decrease slightly by 0.4% YoY in the first half of 2012.

German metal and steel companies' exports increased by 2.7% YoY in the first half, while price adjusted sales to domestic customers were 0.8 percent lower compared to the first half of 2011.

Meanwhile, in the period in question new orders for German steel and metal processing companies decreased by 1.6% YoY, while domestic orders fell 3.7% YoY and new orders from abroad fell by 0.8% YoY.

The association said that the decisive factors are now no longer primarily the customer industries, but the regional target markets of the customers. While western and southern Europe in particular is becoming weaker, most other regions continue to develop dynamically.

According to WSM, the activity in the sector deteriorated in July 2012 after an intermittent recovery in the previous month. Both the current business situation and the prospects for the next six months were judged negative. This suggests that the second half has made a rather weak start economically.

In the medium term, however, WSM expects the stabilization of business and growing momentum in economic development. Overall, 11,000 new jobs were created in the German steel and metal processing sector in the first half of 2012, an increase of around 2.5% YoY.

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