In April, German industry again received around ten percent fewer orders than a year ago. Compared to March, which was already weak, orders fell again.
The low order intake is part of a series of negative news about the economy. Germany is already in one Recession.
Within the industry, however, the picture is mixed. And above all, the lack of large orders is pulling the numbers down.
German industry is under great pressure. In April, incoming orders fell again by 0.4 percent. The small drop carries a lot of weight because it followed March’s 10.9 percent plunge. Compared to the same month last year, German industrial companies received 9.9 percent fewer orders in April.
Economist Ralph Solveen from Commerzbank spoke of difficult times for German industry. Production is likely to be supported for a few more months by the orders that have been left behind in the corona pandemic. “In the second half of the year, however, there is a risk of a significant decline, which should make a significant contribution to the German economy shrinking overall in the second half of the year.”
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The bad numbers join a multitude of negative news from recent times. With the Ifo business climate and the ZEW economic expectations, two important indicators for the German economy are pointing downwards again. That worked in the first quarter gross domestic product (GDP) decreased by 0.3 percent. GDP had already shrunk by 0.5 percent in the fourth quarter. Germany is thus in one Recession.
German industry had a difficult year
“Following the severe slump in March, incoming orders were also generally weak at the beginning of the second quarter,” commented the Economics Ministry on the figures from the Federal Statistical Office. However, the order backlog is still at a comparatively high level. “Overall, however, the weak incoming orders do not yet indicate short-term growth impulses for industrial production.”
The lack of major orders is currently causing a burden. Excluding this volatile component, total orders would have risen 1.4 percent from March to April. German industrial companies received slightly more orders from Germany in April, but they took them away from abroad. Capital and consumer goods were ordered less. Intermediate goods orders picked up.
The Ministry of Economy pointed out that not all branches of industry received fewer orders. The areas of motor vehicles and motor vehicle parts as well as chemical products reported growth. There are declines in pharmaceuticals and mechanical engineering.
With material from dpa.
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