Germany: another drop in industrial orders in October

Industrial orders in Germany fell 3.7% month-on-month in October 2023, following an upwardly revised 0.7% increase in September, and compared to forecasts for a 0.2% increase, a sign that the industrial sector remains fragile and far from its maximum potential .

The biggest drag came from machinery and equipment orders (-13.5%), followed by metal products, base metals, electrical equipment and the automotive industry. In contrast, new orders for transportation equipment increased by 20.2%, driven by large-scale orders and not so much by private individuals.

Foreign orders also fell 7.6%, with new orders from the euro area down 7.6% and orders from the rest of the world down 7.4%. This indicates a lower competitiveness of German products in the global context.

Domestic orders instead increased by 2.4%. In October, new orders, excluding large ones, increased by 0.7%. The less volatile three-month quarterly comparison showed new orders were 4.6% lower in August-October 2023 compared to the previous three months.

Here is the relevant graph

The decline in industrial orders from abroad should be considered the most worrying: Germany is evidently no longer able to be competitive on international markets. It competes on internal ones, but in the world it counts less and less and this will cut the economies of scale of the German industry, making it even less competitive.

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The article Germany: another drop in industrial orders in October comes from Economic Scenarios .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/germania-altro-calo-degli-ordini-indusriali-a-ottobre/ on Thu, 07 Dec 2023 11:47:04 +0000.