Industry in Germany received more orders in October after two setbacks in a row. According to the Federal Statistical Office on Tuesday, incoming orders were 0.8 percent higher than in the previous month. Analysts had expected an increase, but only by 0.1 percent on average.
In September, incoming orders fell by 2.9 percent month-on-month and by 2.0 percent in August. However, September's reading was revised sharply higher after previously reporting a 4.0 percent decline.
Year-on-year, October order intake fell 3.2 percent, the statement said. The situation in the economy remains difficult. Although orders from abroad are increasing, domestic orders are continuing to decline, according to the Association of German Chambers of Industry and Commerce. "High inflation and the fear of a recession are making consumers and companies reluctant to buy and invest in this country."
In a statement, the Federal Ministry of Economics spoke of a stabilization of orders. "The slight increase compared to the previous month is mainly due to a recovery in foreign demand," it said. However, economists referred to the importance of the large orders and remained rather skeptical.
Order intake falls sharply in consumer goods
While domestic orders fell by 1.9 percent in October compared to the previous month, according to the Federal Statistical Office, foreign orders rose by 2.5 percent. According to the Federal Statistical Office, incoming orders from the euro zone increased by 2.6 percent and incoming orders from other countries by 2.5 percent.
The subgroups showed a different development. Manufacturers of capital goods recorded 3.2 percent more orders in October than in the previous month. In contrast, incoming orders from manufacturers of intermediate goods fell by 1.4 percent. Order intake for consumer goods fell particularly sharply. These are goods for everyday needs, from wardrobes to cleaning supplies. In this area there was a minus of 6.3 percent.