Domestic orders in April fell 6.8 percent from the previous month.
(Photo: dpa)
Berlin New business in German industry has slumped more than it has since the peak of the Corona crisis three years ago, signaling gloomy times. Orders fell in March by 10.7 percent compared to the previous month and thus more strongly than since the collapse at the beginning of the pandemic in April 2020, as the Federal Statistical Office announced on Friday.
Economists surveyed by the Reuters news agency had only expected a decline of 2.2 percent. “This number completely destroys the good start of the year for German industry and is a real signal of recession,” said LBBW economist Jens-Oliver Niklasch. “The result is quite simply a disaster,” emphasized chief economist Alexander Krüger from Hauck Aufhäuser Lampe Privatbank.
In February there was a 4.5 percent increase in orders, the strongest since mid-2021. Meanwhile, domestic orders in March fell 6.8 percent mom, while overseas demand fell 13.3 percent.
“After three increases in a row, incoming orders literally collapsed in March,” commented Commerzbank chief economist Jörg Krämer. “Orders have thus resumed their downward trend.” Chief economist Thomas Gitzel from VP Bank was also pessimistic: “Incoming orders were and are weak – even more: something is brewing.”
That’s what economists say about the slump in orders in industry
The Federal Ministry of Economics nevertheless sees signs of a gradual improvement. “Following the weak final quarter of 2022 and the volatile start to 2023, an economic recovery can still be expected for the rest of the year.” Without major orders, the drop in orders would have been lower overall at 7.7 percent.
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