Domestic orders fell by 4.5 percent in July.
(Photo: dpa)
Wiesbaden In July, German industry received fewer orders for the sixth month in a row. Orders were 1.1 percent lower than in June due to weakening domestic demand, the Federal Statistical Office announced on Tuesday.
Economists surveyed by the Reuters news agency had only expected a decline of 0.5 percent, which was only half as strong, after there had already been a minus of 0.3 percent in June. “As a result of the Russian war of aggression in Ukraine, there has already been the sixth decline in a row,” emphasized the Federal Ministry of Economics. Orders were thus 13.6 percent below the level of the same month last year.
A cooling global economy, a shortage of materials and rising prices are currently causing problems for the industry. “Due to the war and the high gas prices, the development of demand in the manufacturing sector was also weak at the beginning of the third quarter,” commented the Ministry of Economics on the development and does not expect a quick turnaround.
“For industrial companies, the outlook for the second half of the year remains subdued, which is also reflected in a cooled business climate and cautious export expectations.”
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Domestic orders fell by 4.5 percent in July. On the other hand, sales from abroad grew by 1.3 percent: while demand from the euro zone collapsed by 6.4 percent, new business with the rest of the world increased by 6.5 percent.
“The fact that the minus comes exclusively from within Germany fits into the picture, after all there is a risk of an energy crisis in Germany in particular,” said Commerzbank chief economist Jörg Krämer. “The German economy is facing difficult months. I expect a further decline in gross domestic product from autumn, i.e. a recession.”
Economists on the sixth fall in industrial orders
Orders for capital goods such as machines, vehicles and systems fell by 0.2 percent this time. In contrast, manufacturers of intermediate goods saw growth of 1.5 percent. Orders for consumer goods fell 16.9 percent.
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