A surprise for experts: At the end of the year, German industry received more orders than expected. Nevertheless, the increase is no reason to be happy.
German industry surprisingly received more orders at the end of the year. Orders in the manufacturing sector increased by 8.9 percent month-on-month in December, according to the Federal Statistical Office. Experts were surprised by the development: they had expected an average decline of 0.2 percent.
The strong order intake followed stagnation the month before. Year-on-year, incoming orders rose by 2.7 percent. From this point of view, order intake was also significantly higher than expected. Large orders were crucial for the strong incoming orders.
“Despite the significant increase in incoming orders at the end of the year, orders in the last quarter of 2023 are at a standstill compared to the previous quarter,” said Jupp Zenzen, economic expert at the German Chamber of Commerce and Industry (DIHK). “Unfortunately, the increase in December is not yet a trend reversal. It is solely due to large orders.”
Zenzen also pointed out that the industry was feeling the effects of both the weak domestic economy and a continuing difficult global economic environment. “There are also structural concerns such as high costs, especially for energy, and bureaucratic burdens. These do not bode well for the current year.”
Source: Stern
