Orders for German industry continue to rise surprisingly

The incoming orders are once again providing a ray of hope for the struggling German industry. In July, orders rose by 2.9 percent month-on-month thanks to larger orders, the Federal Statistical Office (Destatis) in Wiesbaden announced. This is the second increase in a row after incoming orders had previously fallen continuously for five months.

Analysts were positively surprised by this. They had expected an average decline of 1.7 percent for July. After revision of the preliminary results, there was an increase of 4.6 percent for June 2024 compared to May 2024 (previously: 3.9 percent). The DIHK spoke of a “glimmer of hope”. But there is no reason to sound the all-clear.

A year-on-year comparison also showed a positive development. In this statement, the Federal Office reported an increase of 3.7 percent, after a decline of 11.2 percent in the previous month.

Large orders ensure plus

The positive result in July was due to large orders. These revealed that incoming orders were 0.4 percent lower than in June, it continues. The three-month comparison showed a positive development. From May to July, incoming orders were 1.7 percent higher than in the previous three months.

The positive development in incoming orders in July is due in particular to the significant increase in “other vehicle construction” – including numerous aircraft, ships, trains and military vehicles. Here, new orders were reportedly 86.5 percent higher than in the previous month due to several large orders.

“A glimmer of hope, but no all-clear”

DIHK foreign trade expert Lola Machleid called the renewed increase in incoming orders at least a glimmer of hope. “But it is too early to give the all-clear. It remains to be seen whether the boost from new large orders is a sign of a positive trend.” Uncertainty in the economy remains high. High costs and uncertain economic conditions continue to weigh on the willingness to invest and demand for industrial products in this country.