Development of new manufacturing orders in August 2022

According to the Federal Statistical Office¹, new manufacturing orders fell between July and August by 2.4%. Excluding large orders, they rose by 0.8%. July had recorded a 1.9% increase (revised data).² This means that, according to the latest figures, orders were 4.1% lower than the previous year’s level.

The decline from the preceding month was due to lower demand for intermediate and capital goods ( 4.2% and 2.4% respectively). By contrast, manufacturers of consumer goods saw a rise of 5.2%. Domestic orders were down by 3.4%. Foreign orders shrank by 1.7%. Here, demand from the eurozone fell more sharply than new orders from the non-eurozone ( 3.8% and 0.4% respectively).

At sectoral level, the manufacturing sector was affected by sharp falls in orders for “other vehicles” ( 45.7%) and for electrical equipment ( 16.0%). In contrast, the important areas of automotive/automotive parts and mechanical engineering registered increases in new orders of 4.7% and 3.8% respectively. There were also tangible increases in orders for pharmaceutical products (+6.8%) and in the field of computer/optical products (+2.5%). There was less demand for chemical products ( 3.4%).

The industrial sector has clearly slowed down against the backdrop of the war and the high gas prices. The restrained outlook for the rest of the year is also reflected in a cooler business climate and reduced export expectations.

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¹ Press release by the Federal Statistical Office of 6 October 2022.
² All figures are based on provisional data and have been adjusted for price, calendar day and seasonal factors (X13 JDemetra+ procedure).