After two sharp increases in June and July, orders for German industry slumped in August: incoming orders in the manufacturing sector fell by 10.6 percent compared to the previous month, the Federal Statistical Office in Wiesbaden announced on Tuesday. However, looking at the three-month comparison, there was an overall increase of 1.3 percent.
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In July, a series of large orders in the shipbuilding, rail vehicle, and aircraft manufacturing sectors had driven a sharp 3.2 percent increase; however, such large orders were absent in August. Excluding these, industrial orders remained virtually stagnant compared to the previous month, showing a change of minus 0.1 percent.
Fewer orders were received from both the domestic market (down 17.3 percent) and abroad (down 5.4 percent). The sharp drop in domestic orders was driven by demand for capital goods, which plummeted by 28.6 percent, according to the Federal Ministry for Economic Affairs. However, that demand had previously surged due to major government contracts.
“Due to the growing importance of public procurement, incoming orders continue to show high volatility,” the ministry explained. At the same time, industrial demand at the start of the year was influenced by special factors linked to the war in the Middle East—though the impact of these factors eased “noticeably” in the third quarter (July to September).
“Even though new industrial orders were weak in August and structural competitiveness issues persist, the order situation has improved significantly of late—particularly in sectors benefiting from the rise of AI and government procurement,” the ministry emphasized. Order volumes in August were substantially higher than in the same month last year, recording an increase of 2.7 percent.
Author: AFP – ilo/hei – Translated by Blackout News
Sources: AFP Press Portal