Sunday, 5 December, 2021

German industrial orders up slightly in September

FRANKFURT: German industrial orders, a key gauge of the health of the manufacturing sector, rose modestly in September, official data showed on Thursday, after bottlenecks in global supply chains had caused them to plunge the previous month.

The federal statistics office Destatis calculated that industrial orders rose by 1.3 percent month-on-month in September, after plummeting by 8.8 percent in August, reports AFP.

A sector breakdown showed that orders in the machine manufacturing sector jumped by 12.2 percent and orders for the flagship auto industry—hit the previous month by a global shortage of computer chips—were up by 9.6 percent.

Domestic orders fell by 5.9 percent, the third consecutive month of declines, while foreign orders rose by 6.3 percent, Destatis said.

ING economist Carsten Brzeski described the upturn in overall orders in September as “meagre”.

The “sharp collapse over the summer has left its mark on industry,” he said, attributing the renewed drop in domestic orders to “ongoing supply chain frictions and companies simply delaying new orders, knowing that delivery times are long anyway.” But LBBW economist Elmar Voelker said German companies are still “sitting on full order books”, which could be a “driver for growth” in 2022, even if businesses are currently struggling to fulfil them.