German industrial companies have also recently received fewer domestic orders.
(Photo: dpa)
Berlin In April, German industry surprisingly landed fewer orders for the third month in a row. The companies collected 2.7 percent fewer orders than in the previous month, as the Federal Statistical Office announced on Tuesday. Experts polled by Reuters, on the other hand, had expected small growth of 0.3 percent. In March there was a slump of 4.2 percent, in February a minus of 1.3 percent. “The increased uncertainty caused by the Russian invasion of Ukraine continues to lead to weak demand, especially from abroad,” said the Federal Ministry of Economics.
Commerzbank economist Ralph Solveen gave other reasons why “the order boom is over”. Demand in China has weakened significantly due to repeated lockdowns as part of the government’s zero-Covid policy, said the economist, referring to Germany’s most important trading partner. “Another reason is likely to be the supply bottlenecks for many goods, which is why companies are ordering fewer of other primary products.”
The Association of German Chambers of Industry and Commerce (DIHK) sees great uncertainty in the economy. “A cooling global economy, ongoing supply chain problems and rising prices are dampening demand for industrial goods, especially from customers abroad,” said DIHK economic expert Jupp Zenzen. High energy and raw material prices also led to a reluctance to place orders.
Orders from abroad fell by 4.0 percent in April. New business outside the euro zone fell by 3.0 percent, and that from the monetary union by as much as 5.6 percent. Domestic orders also fell, down 0.9 percent. In particular, capital goods such as machines, vehicles and systems were less in demand because corporate customers are currently reluctant to spend more: Here, demand collapsed by a total of 4.3 percent. “Overall, the outlook for industrial activity in the coming months is subdued,” wrote the Economics Ministry.
Top jobs of the day
Find the best jobs now and
be notified by email.
However, the industry is currently not lacking in orders in general, but rather in preliminary products such as computer chips. “Companies continue to have well-filled order books,” the ministry emphasized. 77.2 percent of companies are currently complaining about bottlenecks or problems in the procurement of preliminary products and raw materials, as the Munich Ifo Institute found out in its monthly company survey. “The supply chains are under constant stress,” said the head of the Ifo surveys, Klaus Wohlrabe. “The closure of ports in China has further worsened the situation for many companies.”
More: Slump in business expectations: German industry is facing an existential crisis