ORDERS in German industry fell again in September, twice as sharply as in August, reflecting a sharp decline in demand from abroad, data from the statistics office showed today.

New industrial orders decreased in September by 4 percent compared with August, when they had fallen 2 percent, Destatis found. Foreign demand plunged seven percent, with an 8-percent drop in orders from the eurozone and a 6.3-percent drop from the rest of the world. Domestic demand rose a modest 0.5 percent.

Demand for consumer goods increased

Manufacturers of capital goods recorded in September an order value 6 percent lower, and those of intermediate goods 3.4 percent lower. The economy ministry highlights a 9-percent drop in orders in the automotive industry and an 8.1-percent drop in the machinery industry. Demand for consumer goods, meanwhile, rose 7.2 percent compared with August.

Compared with September last year, industry recorded a 10.8 percent drop in orders, almost three times sharper than in August. “It seems that the strong inflow of new orders supported by post-coronavirus-pandemic recovery effects has waned,” the economy ministry notes.

“The outlook for industry remains subdued due to high energy prices, which are increasingly reaching end consumers. After the unexpectedly positive development of gross domestic product in the third quarter, a weak fourth quarter is looming,” they warn.

Source: index.hr