ROUNDUP: German industry receives slightly fewer orders | 06/07/21

WIESBADEN (dpa-AFX) – German industry received slightly fewer orders in April. Compared to the previous month, the orders fell by 0.2 percent, announced the Federal Statistical Office on Monday in Wiesbaden. Analysts had expected an increase of 0.5 percent on average. The latest decline follows a significant increase of a revised 3.9 (initially 3.0) percent in the previous month.

Compared to the same month last year, orders in April were 78.9 percent higher. The unusually strong increase is due to the drop in orders during the first corona wave about a year ago. Analysts had expected strong growth, but estimated it to be somewhat lower. The pre-crisis level of February 2020 was exceeded by 9.9 percent in April.

Large orders in April created a burden. Without this component, the orders would not have fallen, but increased significantly by 1.5 percent. Domestic demand was weak and fell. On the other hand, it increased from abroad, especially from countries outside the Eurozone. According to goods groups, orders for consumer and capital goods increased, while intermediate goods were less in demand.

The Federal Ministry of Economics commented that incoming orders stabilized at a high level. “They are above the level of February 2020, the last month before the outbreak of the pandemic, for the seventh consecutive month.” In the chemical and pharmaceutical industries, orders were down, but increased in the auto industry.

Commerzbank economist Ralph Solveen made a similar statement. Incoming orders have fallen slightly. “After a year with some very strong growth, this is hardly a cause for concern.” Especially since surveys also showed that the business of industrial companies was doing very well.

The export-strong German industry has long benefited from the global economic recovery after the corona pandemic. In addition, it is significantly less affected by the corona restrictions than the service sector.

However, according to the expert Solveen, the industry has problems to cope with the flood of orders caused by the economic situation. This is probably the reason for the significant decline in recent sales. For tomorrow’s production figures, this also means that a clear minus can be expected./bgf/men