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 rose by 4.5% between July and August. [2] Demand for intermediate, capital and consumer goods increased by similar amounts (+4.5%, +4.7% and +4.2% respectively). Excluding large-scale orders, the rise in new orders was equally strong (+4.5%).

In the two-month comparison of July/August against May/June, new manufacturing orders grew by 18.9%. Following the relaxation of the hard lockdown in April, a sustained recovery trend has been observed since May, albeit at a slower pace after the bounce-back in the last few months. Domestic demand rose by 4.2%, while the number of orders from the eurozone and from the non-eurozone increased by 28.3% and 34.0% respectively.

The rise in new orders in the manufacturing sector is continuing at a remarkable pace. This is primarily due to demand from abroad. Leading indicators, including the ifo figures for business expectations, and the fall in short-time work are suggestive of a positive outlook.

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