VW production in Saxony: a lack of chips is slowing the auto industry
Photo: Sebastian Kahnert / dpa
The global economy is again suffering more from the corona crisis - and the export-oriented German industry is feeling this.
The orders of the manufacturing industry in this country collapsed for the second time within three months in October.
Entrepreneurs landed 6.9 percent fewer orders than in the previous month, according to the Federal Statistical Office.
Falling foreign demand in October caused the poor performance.
These orders fell by 13.1 percent compared to the previous month.
Orders from the euro zone fell by 3.2 percent, while those from the rest of the world fell by 18.1 percent.
Domestic business, on the other hand, grew by 3.4 percent.
"The underlying demand remains strong"
Overall, economists had only expected a decline of 0.5 percent.
In September there had been growth of 1.8 percent, which followed a slump of 8.8 percent in August.
"The second sharp decline in incoming orders within the last three months means a further setback for the economic outlook," said the Federal Ministry of Economics.
Compared to the same month last year, orders fell by one percent this time, the first time in more than a year.
The orders are slowed down by delivery problems, analyzed Holger Schmieding from Berenberg Bank.
“If things can't be produced or delivered quickly enough, fewer orders come in.
The underlying demand remains strong, as surveys suggest. «Companies have been complaining for months that urgently needed raw materials and preliminary products are missing or that they are delayed in delivery: chips for on-board computers as well as insulation materials for construction sites or wood for furniture.
Nevertheless, sales in the industry developed better: Real income in October was 3.6 percent higher than in the previous month.
Compared to February 2020, the month before the restrictions due to the corona pandemic began in Germany, sales were 7.1 percent lower.
The industry's order books are still well filled.
However, production is stuck due to bottlenecks in raw materials and materials such as microchips.
This is one of the reasons why the upswing in the coming year will turn out to be a number smaller than originally thought, according to the German government's forecast.
It lowered its growth forecast to 2.6 percent from 3.5 percent previously.
In 2022 there should be an increase of 4.1 percent, and then 1.6 percent in 2023.
apr / Reuters