German craft sector shows signs of economic recovery

The economic situation for craft businesses in southern Thuringia is showing signs of an upward trend following a period of stagnation comparable to the COVID-19 pandemic. According to the Handwerkskammer Südthüringen's Q3 2026 survey, the business climate index rose to 60 points, up from 52 in the spring. While 41 percent of businesses rate their situation as good, overall expectations remain cautious, with 26 percent anticipating a decline in the coming months.

Improvements were particularly noted in the construction trades, as well as among service providers, bakers, butchers, and confectioners. The average order backlog has increased to eight weeks, up from seven weeks in the third quarter of 2025.

In Saxony-Anhalt, the Handwerkskammer Halle reported a rise in master craftsman graduates, with 151 successful candidates this year compared to 138 in 2023. The most represented fields were automotive technology and electrical engineering. Chamber President Thomas Keindorf emphasized the necessity of new talent to combat demographic challenges and called for continued political support for the craft sector.