After a difficult first quarter, a cautious turnaround is taking shape in small and medium-sized manufacturing. The Economic Barometer for the second quarter of 2026 points to a clear improvement: order intake is picking up, profitability is recovering and workloads are back to pre-slump levels.
Machining firms in the lead
The recovery is driven above all by machining companies. These suppliers, which turn metal and other materials into components, are seeing their order books fill up again. In doing so they play a key role for the wider manufacturing sector, since many end producers depend on their capacity and delivery times.
A mixed picture
Even so, the recovery is far from uniform. Business owners remain cautious and the figures show sharp contrasts. Domestic order positions are developing differently from demand abroad, leaving companies with very different outlooks depending on their market segment.
Strikingly, the willingness to invest is once again negative. Despite rising orders, many entrepreneurs are hesitant to put money into new machines, expansion or additional staff. That caution fits a sector that, after the downturn, first wants certainty about how durable the recovery really is.
What it means for the sector
Orders: recovery across almost the entire sector, with machining firms setting the pace.
Profit: margins are slowly climbing after a weak start to the year.
Workload: back to the level seen before the dip.
Investment: appetite stays negative despite the brighter outlook.
The second-quarter figures therefore give manufacturers reason for cautious optimism. Whether this marks a structural improvement or merely a temporary upturn will become clear over the rest of the year. For now, many firms are keeping a tight grip on spending and waiting to see how things develop before committing to major outlays.