New orders of German manufacturing industry up 2.8 percent in July

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A smart manufacturing workshop is built at Qingdao Special Iron & Steel Co., Ltd. (Photo from CFP)
A smart manufacturing workshop is built at Qingdao Special Iron & Steel Co., Ltd. (Photo from CFP)

New orders of the German manufacturing industry in July increased 2.8 percent month-on-month, the Federal Statistical Office (Destatis) announced on Friday.

Compared with February, the month before COVID-19 measures including the temporary closure of shops and factories were in place in Germany, new orders were still down 8.2 percent, according to Destatis.

July was the third consecutive month in which Germany’s manufacturing industry recorded more orders, but the increase was not as large as in the previous months, according to Destatis. For June, a revision of the preliminary outcome resulted in an increase of 28.8 percent compared with May 2020. The provisional rise was 27.9 percent.

“Following the initial upturn in May and the strong recovery in June, the catching-up process of incoming orders in the manufacturing sector slowed down,” the Ministry for Economic Affairs and Energy (BMWi) said in a statement on Friday.

In the automotive industry, the largest sector of Germany’s industry, new orders in July increased “significantly” by 8.5 percent compared with the previous month. Nevertheless, incoming orders were also below pre-COVID-19 levels.

Although orders from domestic customers in July fell by 10.2 percent, foreign orders increased by 14.4 percent from the previous month, Destatis noted.

Referring to a lower number of short-time workers and improved business expectations of companies, BMWi expects the catch-up process of new industry orders in Germany to continue over the next few months.

On Thursday, the German ifo Institute announced that the number of short-time workers in Germany decreased to 4.6 million in August, down from 5.6 million in July. The latest ifo business climate index, which represented sentiment among business executives in Germany, rose from 90.4 points in July to 92.6 points in August.

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