5 September 2024 – The German construction industry can already look forward to higher incoming orders in 2024, while at the same time demand for construction financing is already 18% higher than in the previous year. In Switzerland, inflation is on the decline. And the much-anticipated Draghi Report seems to be rather ‘quite underwhelming’ so far – nobody really knows what it says.
Switzerland: Inflation on the slide
The inflation rate in Switzerland fell more sharply than expected in August, to 1.1 per cent. Core inflation, adjusted for food and energy prices, also stood at 1.1 per cent in August. Both measures are therefore noticeably lower than the Swiss National Bank’s (SNB) June projections for inflation in the third quarter. The main reasons for this are a strong Swiss franc and a stronger than expected increase in Swiss economic output of 0.7% in the second quarter of 2024. The Swiss National Bank (SNB) could therefore cut its key interest rates to 1.0% in September.
Overall, Switzerland’s trade, financial and economic policy, which is geared towards cooperation, appears to be much better at navigating through challenges and could certainly serve as a role model for the European Union, which is focussed on protectionism.
Germany: positive data from the economy
The construction industry, which already enjoyed a 2.7% increase in incoming orders in June, could see a further rise in the short to medium term. According to reports from the construction financing market, demand for loans has already increased by 18% compared to the previous year. ‘The upturn is here,’ according to industry circles.
Incoming orders in the manufacturing sector pick up
According to the German Federal Statistical Office, incoming orders in the manufacturing sector also increased by 2.9% in July 2024 compared to the previous month. Compared to 2023, incoming orders were even 3.7% higher.
German inflation likely to be below 2.0% in August
Inflation in Germany continues to fall noticeably. The preliminary figures for August 2024 indicate that inflation could be 1.9%, 0.4 percentage points below the previous month. Energy costs (-5.1%) for households fell particularly sharply in August.
Brussels: Draghi’s report on EU competitiveness ‘quite underwhelming’?
According to media reports, the much-anticipated presentation of the EU Competitiveness Report by the former Chairman of the European Central Bank was ‘quite underwhelming’ and lacked any relevance in terms of content.
The content of the report has now been announced for Monday (which Monday actually? ;)).
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