According to the Federal Statistical Office¹, new orders fell slightly in April compared to the previous month (-0.2%), adjusted for price, calendar and seasonal effects. This shows that the downward trend seen since the beginning of the year is continuing, albeit at a much slower pace. In March, the decline was even as much as -0.8% (revised). Domestic orders slipped (-0.3%), whereas foreign demand more or less stagnated (-0.1%). A drop in orders from the eurozone (-1.4%) was offset by an increase in orders from outside the eurozone (+0.6%).

Once again, the individual branches within the manufacturing sector saw differing developments: the sector of “other vehicles”, which in the past was dominated by large orders, saw a sharp decline in orders (-15.4%). Data, electrical and optical devices (-51%) and electrical equipment (-4.1%) also recorded significantly fewer orders. In contrast, there was a noticeable increase in orders in the textiles (+10.9%), motor vehicles and parts (+4.1%) and metal production (+3.3%) sectors.

Despite another decline in new manufacturing orders, the figure for April (adjusted for large orders) showed a strong increase of 2.9%. Large orders from other European countries in particular have recently led to high monthly fluctuations. Sentiment indicators such as the ifo business climate and purchasing managers indexes suggest a gradual recovery in domestic and foreign demand, which is expected to lead to a trend reversal in incoming orders over the further course of the year.

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¹ Press release of the Federal Statistical Office of 6 June 2024.