Business Assessment for 2024 and beyond

German IFO institute Climate Index reports a rise in April 2024

The reality of lower-order intake is beginning to hit home in 2024, but there is some light at the end of the tunnel; the German IFO institute’s monthly Business Climate Index rose by 1.5 points in April to 89.4, the third consecutive monthly increase.

We are all aware of the perfect storm created post-pandemic by increased business activity, product price inflation, and the scarcity of many components. These factors led to a mini-boom in 2022/23, leading to pricing increases and extended lead times. These lead times saw many purchasing officers facing the challenge of signing off on orders based on continuing business at that level into 2024 and beyond without clarity from the market.

However, issues like the war in the Ukraine and general business sentiment meant that many manufacturers in Q4 2023 were supplying into stock and deferring problems until 2024.

The IFO report actually reports that business expectations have risen above their actual assessment of the situation, the first time this has happened since 2021.

REO has been working hard with its suppliers and customers alike to ensure that we remain able to respond to challenges by supplying quickly for unexpected business opportunities or helping to manage deferments and slowing down order intake. We recognize that business fluctuations are part of life and value mutually beneficial long-term relationships over short-term gain.

We are seeing a marked upturn in business activity and eagerly await the results of May’s report.

REO is exhibiting at the upcoming EMC & CI 2024 event in Newbury in May,