Industrial orders rise for the seventh month in a row

In November, too, German industry landed more orders than in the previous month. Experts had expected a decline.

Employees manufacture at the Jungheinrich plant in Norderstedt

Dhe order books of German industry surprisingly filled for the seventh month in a row in November. New business grew by 2.3 percent compared to the previous month, as the Federal Ministry of Economics announced on Thursday. Year-on-year, orders rose 6.3 percent in November.

Economists polled by Reuters, on the other hand, had expected a decline of 1.2 percent. In October there was a revised increase of 3.3 (previously: plus 2.9) percent. Due to the race to catch up, the pre-crisis level has now been noticeably exceeded: Measured on February 2020, the month before the start of the restrictions in the wake of the corona pandemic, orders are 4.0 percent higher.

“The incoming orders were able to continue their recovery process in November despite a partial lockdown,” emphasized the ministry. Incoming orders in the two important sectors of mechanical engineering and the automotive industry were slightly weaker. “However, this was compensated for by noticeable growth in the areas of other vehicle construction, IT and optical devices and chemical products,” said the ministry. The good industrial activity gives reason to hope that the economy did not shrink significantly in the fourth quarter. The lockdown, which began in November, has now been tightened and has now been extended to the end of January, is primarily a problem for service providers and downtown retailers.

Industry can count on foreign business to pick up momentum with the expected recovery of the global economy. In November, orders from abroad increased by 2.9 percent, more than those from Germany with 1.6 percent. Orders from the euro zone, which was badly affected by the second wave of pandemics, even increased by 6.1 percent, while those from the rest of the world rose by just 0.9 percent.