Arbeiter in einem Werk stehen für Auftragseingang im Verarbeitenden Gewerbe.

© Monty Rakusen/cultura/Corbis

According to the Federal Statistical Office [1], new manufacturing orders rose sharply between November and December by 3.8%.[2] While new orders of intermediate goods and capital goods rose perceptibly (+2.4% and +5.7% respectively), the volume of new orders of consumer goods dropped (-5.1%). Most of the increase in the manufacturing sector is down to large orders. If they are excluded, the level of new orders rose by 0.8% in December

The trend in new orders is also pointing clearly upwards. There was a clear rise of 4.2% in the fourth quarter. Capital goods in particular saw a positive development, while the other fields also recorded a rise. The much stronger demand-side stimulus continued to come from outside Germany (+5.9%), and particularly from the eurozone. Domestic orders only saw a moderate increase in the fourth quarter, of 1.7%.

Overall, new orders developed very dynamically in the second half of 2017. The December figure marked a new record – not least thanks to a large number of large orders. The brisk demand from abroad in particular is resulting in full order books and a good mood in the companies. German industry is likely to make a strong start to 2018.

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[1] Press release by the Federal Statistical Office of 6 February 2018.
[2] All figures are based on provisional data and have been adjusted for price, calendar-day and seasonal factors (Census X-12-ARIMA).