Overview
- The BDI, which announced the change Monday at the Hannover Messe trade fair, withdrew its January call for 1% growth and now expects flat industrial output in 2026.
- The lobby tied the downgrade to the Iran conflict, citing pricier energy plus fresh risks from disrupted shipping and logistics.
- Capacity use sits a little above 78%, and the group warned that prolonged maritime disruption could make 2026 the fifth straight year of falling factory output.
- BDI president Peter Leibinger said the deeper problem is structural, pointing to high taxes, heavy paperwork, labor and energy costs that have dulled competitiveness.
- Leibinger urged the government to deliver a broad reform package by summer to revive investment, cautioning that stagnation means Germany loses ground as other economies grow.