The brand economy is also cooling off
After a good business year in 2007, the leading manufacturers of consumer goods and durable goods are also feeling that the economy is cooling off. In a representative survey by the brand association, the nearly 400 member companies gave lower marks.
As the Markenverband reports, companies have become more cautious overall when assessing the overall economic situation: only just under 40 percent of companies currently consider this to be good, and around half of the companies give a “satisfactory” rating. A year ago, almost 70 percent rated the prospects as good. Brand sales in 2007 increased significantly for more than 60 percent of the companies, both at home and abroad.
In around a third of the companies, the share of branded goods in the total turnover has continued to increase, and in the case of 40 percent of the members, earnings and employment have increased over the past year. Around half of the companies state that sales in the branded economy developed “good to very well” in the first quarter of 2008, and one in three companies also expect growing earnings this year.
Overall, the representatives of the branded goods companies signaled that no significant increases in investments and personnel are to be expected in 2008 on average. “We are watching the weak and still falling consumption with concern,” comments brand association president Franz-Peter Falke, despite signs of an easing in energy and raw material prices.