The highest order intake since June 2021 gives German industry a boost. In February, the price-adjusted volume of new orders increased by 4.8 percent compared to the previous month, as the Federal Statistical Office announced on Wednesday. According to the Wiesbaden statisticians, large orders for ships, aircraft and military vehicles, among other things, made a significant contribution to this third growth in a row. In this area there was an increase in orders of 55.9 percent compared to January 2023.
Measured against February 2022, the total order intake for industry in Germany in February of the current year was 5.7 percent lower after calendar adjustments. In addition, not all industrial sectors benefited from the recent upswing. According to information from the Federal Ministry of Economics, orders in the pharmaceutical industry, for example, were down 5.5 percent on the previous month in February. On the other hand, there was renewed growth in the automotive industry, metal production and the chemical industry.
slack in mechanical engineering
According to the industry association VDMA, mechanical and plant engineering continues to experience a slump in orders. Orders received in February, adjusted for price increases (in real terms), were 17 percent below the level of the same month last year, as the Association of German Mechanical and Plant Engineering (VDMA) announced in Frankfurt. “The decline can be explained in particular by the fact that the economic situation continues to be characterized by numerous challenges, which is causing many investors to be cautious,” explained VDMA economics expert Olaf Wortmann. In addition, according to the information, there were a particularly large number of orders in the same month last year.
With a view to the overarching figures, the Ministry of Economics spoke of an “economic recovery”: “Incoming orders in many sectors of German industry are still on the recovery course.” According to the Federal Office’s latest calculation, the increase in orders in January compared to the previous month was only half as large as initially calculated, at 0.5 percent.
“The current increase in orders is at least a glimmer of hope,” said Jupp Zenzen, economic expert at the German Chambers of Industry and Commerce (DIHK). In view of the slowdown in the global economy, high cost increases and rising interest rates, this is not yet a sure-fire success.
Commerzbank analyst Ralph Solveen also spoke of a positive surprise from German industry. However, it is too early to speak of an upward trend: “This is unlikely to be the beginning of a long-term economic recovery,” said Solveen.
