{"id":98334,"date":"2026-03-30T06:41:11","date_gmt":"2026-03-30T06:41:11","guid":{"rendered":"https:\/\/www.timberindustrynews.com\/business-climate-in-germanys-wood-industry-continues-to-deteriorate\/"},"modified":"2026-03-30T06:41:11","modified_gmt":"2026-03-30T06:41:11","slug":"business-climate-in-germanys-wood-industry-continues-to-deteriorate","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/business-climate-in-germanys-wood-industry-continues-to-deteriorate\/","title":{"rendered":"Business climate in Germany\u2019s wood industry continues to deteriorate"},"content":{"rendered":"

Sentiment in the German wood industry deteriorated slightly again in February, following four consecutive months of decline in the HDH (Main Association of the German Wood Industry) business cycle indicator. Companies reported being somewhat more satisfied with their current business situation but were more pessimistic about the coming six months. The assessment of the current situation improved slightly to -27 points in February. In contrast, the outlook for the next half year worsened significantly, with the current value at -13.2 points. Overall, the HDH business cycle indicator edged down slightly in the reporting month to -20.2 points.<\/p>\n

Compared with the overall manufacturing sector, the business climate in the wood industry is currently weaker. The indicator calculated by the ifo Institute for manufacturing rose slightly in February to -11.3 points, placing it well above the corresponding value for the wood industry. Given the differing impact across segments, sentiment in the wood industry remains uneven. On average over the past three months, companies in timber construction and construction-related segments have assessed their current business situation as positive, while it has been viewed much more negatively in the sawmill industry, the furniture industry, and the wood-based panels industry. Business expectations for the coming six months remain negative across all segments of the wood industry, with the exception of timber construction and the wood-based panels industry.<\/p>\n

Housing sector outlook offers some hope<\/strong><\/p>\n

According to HDH, the improved sentiment in timber construction and construction-related segments is primarily due to a recovery in housing demand. The number of approved single- and two-family homes rose significantly by 14.6% in 2025, while permits for multi-family housing increased by 8.7%. The furniture industry continues to be affected by declining building completions in Germany but benefits from rising demand in key European export markets such as Switzerland, Italy, and Spain. Volatility in US tariff policy is leaving a deep mark on the German economy and is weighing in particular on sentiment in export-oriented segments.<\/p>\n

In February, the current business situation in the wood industry improved slightly compared with the previous month, while medium-term business expectations deteriorated significantly and turned clearly more negative than in January. This development resulted in a slight decline in the overall business climate. The broadly negative sentiment in the wood industry therefore continues.<\/p>\n

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