Wiesbaden German industry received slightly more orders in May. Compared to April, orders increased by 0.1 percent, as the Federal Statistical Office announced on Wednesday in Wiesbaden. It’s the first increase in three months of declines. Analysts, on the other hand, had expected a further minus of 0.5 percent.
The decline in the previous month was corrected from 2.7 to 1.8 percent. Compared to the same month last year, orders in May fell by 3.1 percent.
Despite the stabilization, the Federal Ministry of Economics sees little reason for optimism. “In view of the high level of uncertainty caused by the war and the threat of a supply freeze for Russian gas, the outlook for industrial activity in the coming months remains cautious,” commented the current development.
Demand from China had also weakened significantly due to repeated lockdowns as part of the Beijing government’s zero-Covid policy. A cooling global economy, ongoing supply chain problems and rising prices are also dampening demand for German industrial goods.
Top jobs of the day
Find the best jobs now and
be notified by email.
Orders from abroad grew by 1.3 percent in May. New business outside the euro zone increased by 3.7 percent, while that from the monetary union shrank by 2.4 percent. Domestic orders fell by 1.5 percent. Capital goods in particular, such as machines, vehicles and systems, were in greater demand this time: Demand here rose by 3.3 percent. Intermediate and consumer goods, on the other hand, were in demand by 3.2 and 4.5 percent, respectively.
However, the industry is currently not lacking in orders, but in preliminary products such as computer chips. “Just pushing back orders in front of you will not be enough for adequate production,” said the chief economist at Hauck Aufhäuser Lampe Privatbank, Alexander Krüger. “The situation is unlikely to improve until the gas supply is secured and supply disruptions subside.”
More: Slump in business expectations: German industry is facing an existential crisis