Arbeiter in einem Werk stehen für Auftragseingang im Verarbeitenden Gewerbe.

© Monty Rakusen/cultura/Corbis

According to the Federal Statistical Office1, new manufacturing orders fell by 0.4% between May and June, after they had already continuously declined due to Russia’s war of aggression against Ukraine in the preceding four months.2 Adjusted for the number of working days, new orders were thus 9.0% below their level a year earlier.

The decline in June compared with the preceding month was primarily due to a sharp drop in demand for capital goods (-1.8%). In contrast, manufacturers of intermediate and consumer goods reported an increase in orders of 1.2% and 1.7% respectively. Domestic orders rose by 1.1%, while orders from abroad fell by 1.4%, especially due to a significant decline in orders from outside the eurozone (-4.3%). Orders from within the eurozone increased by 3.4%.

Whilst manufacturing orders fell slightly in the important sectors of cars/car parts and mechanical engineering (-0.1% and -0.4% respectively), the manufacture of other vehicles saw a sharp drop (-25.6%). Other branches of industry like pharmaceutical products (+9.2%), chemical products (+1.1%) and electrical equipment (+0.6%) reported rises.

In view of the great uncertainty due to the war and the impending gas shortage, demand continues to be weak. The outlook for the industrial sector remains subdued as the business climate has cooled.

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[1] Press release by the Federal Statistical Office of 4 August 2022.

[2] All figures are based on provisional data and have been adjusted for price, calendar day and seasonal factors (X13 JDemetra+ procedure).