Workers at a plant stand for new orders in the manufacturing sector

© Monty Rakusen/cultura/Corbis

According to the Federal Statistical Office , new manufacturing orders fell between May and June by 4.0%. Domestic orders and orders from the eurozone declined by 2.8% and 2.7% respectively. Orders from the non-eurozone saw a fall of 5.9%. The proportion of large-scale orders was below average for the month of June.

Taking the second quarter as a whole, orders fell by 1.6%. This was primarily due to declining orders for capital goods (-3.5%). While the volume of new domestic orders and orders from the eurozone in the manufacturing industry as a whole fell by 2.0% and 4.9% respectively, the volume of new orders from the non-eurozone rose by 1.0%.

Except for a sharp rise in May, the amount of new manufacturing orders has been weak in the current year. As a consequence, orders in the first half-year of 2018 declined by 1.5% compared with the second half of 2017. However, the volume of new orders had increased significantly (+4.7%) in the second half of 2017 compared with the first half of 2017. Uncertainties resulting from trade policies are also likely to have impacted on the latest trend. The stock of orders continues to be very high and although the business climate has somewhat deteriorated, it is still positive.

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[1] Press release by the Federal Statistical Office of 6 August 2018.
[2] All figures are based on provisional data and have been adjusted for price, calendar day and seasonal factors (X13 JDemetra+ procedure).