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

© Monty Rakusen/cultura/Corbis

According to the Federal Statistical Office [1], new manufacturing orders fell between November and December by 2.1%. [2] Domestic orders and orders from the non-eurozone increased by 1.4% and 2.1% respectively. In contrast, orders from the eurozone dropped by 13.9%. Excluding large orders, new manufacturing orders declined by 1.3%.

The decline in new manufacturing orders slowed to 0.5% In the fourth quarter compared with the preceding quarter.

In the last few months, new orders have weakened due to the development in the capital goods sector. In this context, monthly fluctuations in large orders from abroad in the category of ‘construction of other vehicles’ have played an important role: this category alone accounted for around one third of the fall in new manufacturing orders in December. The business climate in the manufacturing sector, however, has improved again. Overall, the outlook for industrial activity remains subdued.

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[1] Press release by the Federal Statistical Office of 6 February 2020.
[2] All figures are based on provisional data and have been adjusted for price, calendar day and seasonal factors (X13 JDemetra+ procedure).