Germany’s producer prices fell for the 16th straight month in October, marking a 1.1% decline compared to the same month last year, according to the Federal Statistical Office. The drop, in line with analysts’ expectations, was slightly smaller than the 1.4% decrease recorded in September.

The Producer Price Index (PPI), which measures the average change in selling prices received by domestic producers for goods and services, was primarily affected by a sharp drop in energy prices. Energy costs fell by 5.6% in October from the previous month.

Light heating oil prices saw the steepest decline, plummeting 22.7%, while prices for mineral oil products and natural gas decreased by 12.9% and 10.1%, respectively. Fuel prices dropped 12.1%, and electricity prices were down by 7.3%.

Excluding energy, producer prices rose by 1.3% in October. Prices for capital goods increased by 2%, driven by a 1.4% rise in motor vehicles and parts, and a 2% increase in machinery costs. Durable goods prices edged up 0.9%, while consumer goods prices rose by 1.9%. Intermediate goods prices also saw a slight rise of 0.4%.

On a month-on-month basis, the PPI grew by 0.2% in October, rebounding from a 0.5% decline in September and meeting market forecasts.

Economic Recovery Hopes Amidst Slowing Activity

Despite the drop in producer prices, Germany’s economy remains under pressure due to weakened industrial output and reduced consumer spending, driven by high interest rates and rising living costs.

In its latest forecast, the European Commission projected a 0.1% contraction in Germany’s economy for 2024. “High uncertainty has been weighing on consumption and investment, while the trade outlook has worsened as global demand for industrial goods declined,” the Commission noted.

However, the report highlighted expectations for an economic recovery starting in 2025, with GDP growth projected to rise to 0.7% that year and 1.3% in 2026. The recovery is anticipated to be supported by increases in real wages, bolstering domestic demand.

Inflation in Germany is expected to moderate, averaging 2.4% in 2024 before easing to 2.1% in 2025 and further declining to 1.9% in 2026. Meanwhile, the government deficit is forecast to decrease, and the national debt ratio is expected to stabilize at around 63% of GDP.

The ongoing decline in producer prices offers some relief to businesses, but it underscores the broader challenges facing Germany’s economy as it seeks to rebound from prolonged industrial slowdowns and global trade uncertainties.

A recent survey by ManpowerGroup highlights widespread workplace stress and job dissatisfaction across Europe, with nearly half of workers experiencing daily stress and a third considering changing jobs within the next six months. The findings, part of the Global Talent Barometer, offer insights into well-being, job satisfaction, and workforce confidence across 16 countries, including 10 in Europe.

Stress Levels Vary Across Europe

The survey revealed that 48% of European workers report daily work-related stress, with notable variations by country. Spain leads with the highest stress levels at 58%, followed by Sweden and Italy at 53%, and Poland at 51%. The Netherlands recorded the lowest stress levels at 34%, with Norway and Switzerland also below average at 40% and 46%, respectively.

Despite high stress levels, 65% of European workers feel supported in maintaining work-life balance and personal well-being. The Netherlands reported the highest perceived support at 73%, while France, Germany, and Switzerland fell below average.

Job Satisfaction and Career Development

Although 82% of respondents find their work meaningful, a significant portion of workers is dissatisfied with career development opportunities. One-third of respondents believe their organisations lack sufficient avenues for advancement, with Norway (41%) and Switzerland (39%) reporting the highest dissatisfaction.

Becky Frankiewicz, ManpowerGroup’s Chief Commercial Officer, noted the evolving expectations of workers. “People expect work to offer more than just a paycheck—more balance, more humanity, and more options. Organisations must meet these needs to retain talent,” she said.

Job Security and Confidence

While 71% of workers feel confident about job security over the next six months, 25% express concerns about involuntary job loss. Norway reports the lowest fear of job loss (18%), while Spain and Poland have the highest (29%).

Confidence in finding a new job within six months stands at 58% across Europe, with the Netherlands (66%) and the UK (65%) leading. Italy (48%) and Sweden (49%) reported the lowest confidence levels.

Training and Retention Efforts

The survey also highlights the role of training in boosting job satisfaction. In the Netherlands, where job satisfaction is highest, 42% of workers received training in the past six months. This contrasts with Norway, where only 37% reported similar opportunities.

Conclusion

ManpowerGroup’s findings underline the challenges European employers face in addressing worker stress, career development, and job satisfaction. As employees increasingly seek workplaces that prioritise balance, growth, and well-being, organisations must adapt to meet these expectations or risk losing talent in an increasingly competitive market.