Development of new manufacturing orders in August 2023

According to the Federal Statistical Office¹, new orders in the manufacturing sector rose by 3.9% between July and August, after they had slumped in July partly due to a special effect relating to large orders (-11.3%). The latest figures show that domestic orders and order from abroad increased at roughly the same rate (+4.0% and +3.9% respectively). In contrast to the preceding months, in which large orders resulted in significant fluctuations, orders excluding large orders also rose by 3.9%.

A recovery in new orders was seen mainly in the field of computer and optical equipment (+37.9%). Orders for electrical equipment (+8.7 %), pharmaceutical products (+4.0 %) and chemical products (+1.7 %) also increased. However, some sectors saw declining orders, e.g. key sectors like cars and car parts (-0.7%) and metal production (-2.0%). Demand was flat in the mechanical engineering sector (±0.0%).

New industrial orders have been very volatile in recent months due to the fluctuations resulting from very large orders. The more meaningful two-month comparison shows that orders in the manufacturing sector remained subdued in August, posting a significant decline of 6.2%. However, sentiment indicators suggest that industrial activity may have bottomed out in the third quarter. It is expected that the economy will pick up speed again at the turn of the year.

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¹ Press release by the Federal Statistical Office of 6 October 2023.