Berlin, July 04, 2024, The Europe Today: The Federal German Statistics Office, Destatis, reported on Thursday that factory orders in Germany fell for the fifth consecutive month in May. Industrial orders dropped by 1.6% month-on-month, a sharper decline than the revised 0.6% decrease observed in April.
Despite a slight increase in domestic orders by 0.5%, the overall decline was driven primarily by a 2.8% fall in foreign demand. Orders from non-eurozone countries saw a significant decrease of 4.6%, while orders from the euro area fell by 0.1%.
Notably, the automotive industry experienced a 2.9% drop in orders. Additionally, there was a sharp 19.2% decline in the “manufacture of other transport equipment.”
The German Economy Ministry noted that the latest figures, coupled with a recent deterioration in business expectations, indicate “rather subdued” industrial activity in the coming months. “Order intakes are only likely to stabilize once global trade recovers further and demand for industrial products gradually picks up,” the ministry added.
Germany, the largest economy in Europe and a traditional driver of European growth, has faced significant challenges since the onset of the war in Ukraine, which has led to global price increases. The German economy contracted in 2023, partly due to a downturn in the manufacturing sector.
The German government has revised its growth forecast for 2024, projecting a modest increase of 0.3%, down from an earlier estimate of 1.3%.
