Compared to the pre-war period, orders in mechanical engineering are still slightly lower.
(Photo: dpa)
Wiesbaden, Berlin The order books of German industry filled up more in February than they have in over a year and a half. New business grew in February by 4.8 percent compared to the previous month, as the Federal Statistical Office announced on Wednesday. That was the third increase in a row and also the strongest since June 2021.
Economists polled by the Reuters news agency had only expected an increase of 0.3 percent, after an increase of 0.5 percent in January and 1.9 percent in December. Compared to February 2022, however, the calendar-adjusted level was 5.7 percent lower.
“Incoming orders are thus still on the recovery course in many sectors of German industry,” explained the Federal Ministry of Economics. The positive development fits with the improved mood in the executive floors of the German economy. “Overall, after the weak end of the year in 2022, there are signs of an economic recovery at the beginning of 2023,” said the ministry.
Economists see it that way too. “A strong injection of orders for the German economy,” commented LBBW economist Jens-Oliver Niklasch on the development. “The recovery trend in the industry is now unmistakable.”
Domestic orders this time increased by 5.6 percent compared to the previous month. Foreign orders grew somewhat weaker at 4.2 percent.
Euro countries order a lot
New business with the euro zone increased by 8.9 percent, while that with the rest of the world was only 1.4 percent. Both the automotive industry (+3.7 percent), mechanical engineering (+2.8 percent) and the chemical industry (+2.1 percent) reported growth. Without major orders, the overall increase would have been significantly lower at 1.2 percent.
The statistical office also published figures on sales in the manufacturing sector. Adjusted for inflation, this increased by 1.5 percent in February compared to the previous month. In January there was still a decline of 0.6 percent.
More: Why economists are reassessing inflation – and what that means for politics