Order intake is stagnating
Industry continues to stall
April 5, 2024, 8:43 a.m
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“Made in Germany” is still not on the verge of a quick comeback. Industrial companies collected hardly any more orders in February than at the beginning of the year. It is difficult to see anything more than a stabilization at a low level in the figures, says one analyst.
In February, German industry barely recovered from the slump in orders suffered at the start of the year due to weak foreign demand. New business grew by 0.2 percent compared to the previous month, as the Federal Statistical Office announced. Economists had expected a stronger increase. In January there was a slump of 11.4 percent, which in turn followed growth of 12 percent in December, fueled by large orders.
“It remains difficult to see anything more than a stabilization at a low level overall,” said economist Jens-Oliver Niklasch from LBBW, commenting on the development. “A rapid recovery in industrial production is therefore unlikely,” added Commerzbank chief economist Jörg Krämer.
Domestic orders rose by 1.5 percent in February from a monthly perspective. On the other hand, foreign demand fell by 0.7 percent. This was due to a sharp decline of 13.1 percent from the Eurozone. The balance looks more positive when one looks at the less fluctuating three-month comparison: Here, total incoming orders from December to February were 2.8 percent higher than in the previous three months. “However, the increase is mainly due to a large order in December,” emphasized the statisticians.
The results were very different in the individual sectors: New business in mechanical engineering grew noticeably again at 10.7 percent after two very negative months. More orders were also received in the chemical industry (3.1 percent) and in the pharmaceutical industry (6.6 percent). The automotive industry, on the other hand, reported a decline of 8.1 percent, while manufacturers of metal products reported a decline of 5.3 percent.
Sales in the manufacturing sector increased in February: adjusted for inflation, they grew by 2.2 percent compared to the previous month. In January there was a decline of 5.2 percent.