Development of incoming orders in the manufacturing industry, reporting month June 2024

According to the Federal Statistical Office, incoming orders in the manufacturing industry rose by 3.9% in June compared to the previous month, after adjustment for price, calendar and seasonal effects. According to revised figures, they fell by 1.7% in May. Orders from abroad increased only slightly (+0.4%), with countries outside the eurozone showing a marked increase (+0.9%). Within the eurozone, however, a decline in orders was recorded (-0.3%). Domestic demand, on the other hand, expanded strongly at +9.1%. Adjusted for major orders, incoming orders were again clearly in positive territory at +3.3% compared to the previous month.

The individual sectors of the manufacturing industry showed a mixed picture: while orders in the important sectors of mechanical engineering (+2.3%), motor vehicles and vehicle parts (+9.3%), metal products (+9.8%) and other vehicle construction (+11.7%) picked up again, incoming orders in the areas of data, electrical and optical equipment (-7.9%), metal production and processing (-4.9%), pharmaceutical products (-4.6%) and the manufacture and processing of paper and cardboard (-5.3%) all saw a decline in incoming orders compared to the previous month.

For the first time in six months, there was an increase in incoming orders, although the trend continued to be characterised by strong fluctuations in large orders. In the more meaningful three-month comparison, there was still a decline of 1.4%. Here, domestic demand increased by 1.2%, while orders from abroad continued to decline (-3.1%). The latest trend in domestic orders, together with the results of the ECB's bank lending survey, could indicate increased investment intentions and a recovery in capital investment in the second half of the year. However, a broader revival of the industrial economy is not likely for the time being, given the continued subdued mood in companies and the still weak foreign demand.