Germany – orders remain weak

Incoming orders in manufacturing remain weak.

Dr. Ralph Solveen

Commerzbank Economic Research

May 7 2024

In March, they fell by 0.4% compared to February, and even excluding major orders, there was only a minimal increase of 0.1%. Against this backdrop, the recent rise in industrial production is unlikely to prove sustainable, meaning that the German economy is unlikely to grow again in the second quarter. A sustained recovery in the German economy is not expected until the second half of the year.

This is undoubtedly a disappointment: after a significant decline over the course of last year, incoming orders in German manufacturing fell by 0.4% in March. Even excluding big ticket orders, there was only a minimal increase of 0.1%, meaning that the trend for this core indicator continues to point clearly downwards.

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