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Production of turbines for wind power plants: Happy conclusion in 2022
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Orders from German industry rose more sharply in December than they have in more than a year due to improved demand from Germany and the euro zone.
According to the Federal Statistical Office, orders in December were 3.2 percent higher than in the previous month.
Many major orders contributed to this this time.
The highest increase since September 2021 was achieved.
Analysts had only expected an increase of 2 percent.
The increase in December follows a significant decline in November, which, according to new data, at 4.4 percent is less pronounced than initially assumed.
Domestic orders grew by 5.7 percent in December compared to the previous month, and those from abroad increased by 1.2 percent.
While demand from the euro zone increased by 9.8 percent, new business with the rest of the world fell by 3.8 percent.
Orders for capital goods such as machines, vehicles and systems stagnated this time.
The manufacturers of intermediate goods saw an increase of 9.7 percent.
Orders for consumer goods fell by 3.3 percent.
"The increase in orders in December is above all a countermovement to the slump in November," commented Commerzbank chief economist Jörg Krämer on the development.
"The trend in incoming orders is clearly downwards."
In the coming months, this should increasingly have an impact on industrial production, which has been quite stable up to now, predicted Krämer.
The boost from processing the orders left behind during the pandemic will decrease.
"Demand in the manufacturing sector stabilized somewhat again towards the end of 2022," wrote the Federal Ministry of Economics.
Like the improved business climate, this indicates “that the economic slowdown in the winter half-year is likely to be milder”.
China as a beacon of hope
The sluggish global economy, lack of materials and the energy crisis are currently affecting the industry.
However, exporters are now looking to the future with more optimism than they have in almost a year.
The barometer for export expectations climbed in January for the fourth month in a row.
"German exporters are hoping for new momentum at the beginning of the year," said Ifo President Clemens Fuest, summarizing the results of the survey.
One reason for this is China: Germany's most important trading partner has now ended its zero-Covid policy, which could give new impetus to the world's second largest economy after the USA.
In turn, German industry should also benefit from this.
mmq/Reuters/dpa
