German manufacturing orders rise 3.9% in June

German manufacturing orders rose by 3.9 per cent in June 2024 from the previous month, marking a recovery after five consecutive months of decline, according to provisional data released on Tuesday.

The increase was driven largely by a 9.3 per cent rise in the automotive industry, as well as notable gains in the fabricated metal products sector by 9.8 per cent and the manufacture of other transport equipment, such as aircraft, ships, and trains, by 11.7 per cent.

Excluding large-scale orders, new orders grew by 3.3 per cent month-on-month and showed a 1.4 per cent increase in the second quarter of 2024 compared to the first quarter.

Despite the positive trend, there was a 7.9 per cent drop in orders within the computer, electronic, and optical products sector, negatively impacting the overall results.

The capital goods sector saw a significant jump of 9.2 per cent in new orders, while the intermediate goods and consumer goods sectors experienced declines of 1.5 per cent and 7.1 per cent, respectively.

Domestic orders surged by 9.1 per cent, significantly contributing to the overall rise, whereas foreign orders grew by just 0.4 per cent. Orders from the non-euro area increased by 0.9 per cent, while those from the euro area fell by 0.3 per cent.

Despite the positive performance in orders, real turnover in manufacturing fell by 0.9 per cent in June 2024 from May, with a calendar-adjusted decrease of 5.0 per cent compared to June 2023.

Revised figures for May 2024 showed a turnover decline of 0.3 per cent from April, slightly better than the initial estimate of a 0.7 per cent decrease.

Attribution: the Federal Statistical Office (Destatis)