Unexpected drop in orders for German industry

In April, German industry attracted surprisingly fewer orders than in the previous month due to the slacking domestic demand.

Orders from German industry have fallen by 0.2 percent since March, as the German Ministry of Economic Affairs announced on Monday. Economists had expected an increase of 1.0 percent after there had previously been three increases in a row.

In the previous month of March, orders grew by a revised 3.9 percent, significantly faster than initially reported at 3.0 percent. Measured on February 2020, the month before the start of the restrictions in the wake of the corona pandemic, orders are now 9.9 percent higher. Compared to April 2020 – the first full month of lockdown – they even jumped 78.9 percent.

Domestic orders this time shrank by 4.3 percent compared to the previous month. Foreign business, on the other hand, grew by 2.7 percent. Orders from the euro zone increased by 0.7 percent, and those from the rest of the world by 3.8 percent. For example, investment goods such as machines and vehicles were in demand: Here demand rose by a total of 0.2 percent, and that for consumer goods by as much as 1.4 percent. Manufacturers of intermediate goods reported a decrease of 1.0 percent.

The export-dependent German industry can benefit from the recovery in world trade from the corona crisis in the coming months. After the historic slump in 2020, the global economy is likely to be stronger this year than it has been since 1976, as the International Monetary Fund (IMF) predicts. The drivers are said to be the two most important buyers of goods “Made in Germany”: the USA and China.

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(APA/Reuters)

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