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 in June rose by 27.9% compared with the previous month. [2] The catch-up process was strongest for capital goods at 45.7% (motor vehicles and parts stood at +66.5%). Intermediate goods saw an increase of 10.6% and consumer goods of 1.1%. Large-scale orders contributed to this increase. Excluding large-scale orders, orders grew by 23.8%.

Due to the stringent shutdown in April and despite the recovery in May and June, new manufacturing orders saw a total decline of 22.9% in the second quarter. Domestic demand was noticeably more robust (-13.9%) than demand from the eurozone (-26.2%) and non-eurozone countries (-30.7%).

Following the initial recovery in May, new orders in the manufacturing sector experienced a significant rise in June. They have already returned to 90.7% of the pre-pandemic level in the fourth quarter of 2019. However, orders from abroad are lagging behind the development in Germany. This shows why the recovery process will continue at a slower place.

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