German manufacturing orders drop in August ’24

German manufacturing experienced a significant decline in real new orders, falling by 5.8 per cent in August 2024 compared to the previous month, according to provisional figures released on Monday. This drop follows a revised increase of 3.9 per cent in July, attributed to a late influx of large orders from manufacturers.

In a three-month comparison, new orders from June to August showed a healthier outlook, rising by 3.9 per cent compared to the preceding three months. Notably, when excluding large-scale orders, the decrease in August was only 3.4 per cent compared to July, and new orders in this category increased by 0.7 per cent over the same three-month period.

Sector analysis revealed that new orders for capital goods plunged by 8.6 per cent, while intermediate goods saw a decline of 2.2 per cent. Consumer goods orders dipped slightly by 0.9 per cent.

Foreign demand played a contrasting role, with new orders from non-euro area countries increasing by 3.4 per cent. However, orders from the euro area dropped sharply by 10.5 per cent, contributing to a total decline of 2.2 per cent in new foreign orders. Domestic orders fell significantly, down by 10.9 per cent.

In contrast to the drop in new orders, real turnover in manufacturing rose by 3.2 per cent in August compared to the previous month, although it was down 3.1 per cent year-on-year. The previously reported data for July was revised to show a decrease of 2.5 per cent from June, highlighting ongoing volatility in the German manufacturing sector.

Attribution: The Federal Statistical Office (Destatis)

Subediting: M. S. Salama