Germany’s Timber Industry Retains Pessimistic Outlook for the Next Six Months

According to the Main Association of the German Wood Industry (HDH), sentiment in Germany’s timber industry stabilized somewhat in April after the HDH business climate indicator declined continuously since October 2025, Moebel Fertigung reported (5-19-26).

The assessment of the current business situation improved to negative 28 points in April from negative 34 points in the previous month. However, companies were more pessimistic about the next six months, with expectations deteriorating to negative 32.2 points from negative 29.4 points in March. Overall, the HDH business climate indicator edged higher to negative 30.1 points from negative 31.7 points.

According to the HDH, the business climate in the wood industry remains weaker than in Germany’s broader manufacturing sector. The ifo Institute’s manufacturing index declined slightly in March but remained significantly above the corresponding reading for the timber industry.

Sentiment across timber industry segments remains mixed. Over the past three months, only companies in the prefabricated timber construction sector assessed their current business situation positively. The sawmill, furniture, and timber packaging industries continued to report significantly weaker conditions.

The HDH attributed improved sentiment in timber construction and related sectors primarily to stronger residential construction demand. Permits issued for single-family and two-family homes rose 15.6% in the first two months of 2026, while permits for multifamily homes increased 20.4%.

Meanwhile, the furniture industry continues to face pressure from declining construction completions and weak consumer confidence in Germany. The HDH also said rising energy and raw material costs, along with concerns over supply chain disruptions tied to the Iran war, have further worsened conditions.