Development of new manufacturing orders in November 2023

According to the Federal Statistical Office¹, new manufacturing orders increased slightly in November compared to the previous month (+0.3%), following a marked decline in October (-3.8%). Once again, domestic demand (+1.4%) - particularly for capital goods (+3.4%) - had a stabilising effect, while orders from abroad continued to fall (-0.4%) due to the ongoing decline in orders from the eurozone. Adjusted for large orders, new manufacturing orders were also slightly down on the previous month (-0.6%).

In November, most branches of industry reported an increase in orders. Especially the important areas of vehicles (+4.7%), chemical products (+3.7%), electrical equipment (+4.8%) and mechanical engineering (+3.9%) recorded significantly higher order numbers than in the previous month. In contrast, the volatile sector of other vehicle manufacturing experienced a sharp drop (-32.1%) after a strong increase in the previous month. Orders in metal production (-7.1%) and pharmaceutical products (-4.7%) were also lower than in the previous month.

While there have recently been signs of domestic orders starting to stabilise in key areas, weak foreign demand, particularly from the eurozone, continues to restrain industrial activity. Leading indicators are currently sending mixed signals, with business sentiment recently deteriorating slightly again after a temporary stabilisation. However, a recovery of the industrial economy is likely to set in during the first half of the year as the domestic economy and foreign demand pick up again.

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¹ Press release by the Federal Statistical Office of 8 January 2024.