Schweißer symbolisiert die Entwicklung der Produktion im produzierenden Gewerbe

© iStock.com/Tony Tremblay

According to the Federal Statistical Office1, new orders in April fell by 2.7% compared with the previous month.2 Monthly order activity fell for the third time in a row in April, which has been primarily due to the increasing escalation of the Ukraine conflict caused by the Russian war of aggression. Most recently, the volume of new industrial orders (adjusted for working days) was significantly lower than in the previous year (-6.2%).

The reported decline was driven primarily by lower demand for capital goods (-4.3%) and consumer goods (-2.6%). However, orders for intermediate goods decreased only slightly
(-0.3%).

Geographically, there was a significant drop in foreign demand, which fell 4.0% (eurozone -5.6%, non-eurozone -3.0%). Domestic orders decreased by 0.9%.

Increased uncertainty resulting from the Russian invasion of Ukraine continues to strongly curb demand, especially from abroad. However, the order books of companies are still well-filled. In addition, a few sectors recorded a rise in order intake, for example mechanical engineering (+3.8%), clothing (+7.7%) and electrical equipment (+1.3%). However, demand continued to be strongly dampened by the key sector of automotives (-8.6%). Overall, the industrial outlook for the coming months will remain subdued.

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[1] Press release by the Federal Statistical Office of 7 June 2022.
[2] All figures are based on provisional data and have been adjusted for price, calendar day and seasonal factors (X13 JDemetra+ procedure).