Development of new manufacturing orders in February 2024

According to figures from the Federal Statistical Office¹, new manufacturing orders rose slightly (+0.2%) between January and February, adjusted for price, calendar-day and seasonal factors; in January there had been a set-back (‑11.4%) following a sharp rise in December (+12.0%). The latest figures show a rise in orders from Germany (+1.5%), whilst fewer orders were received from abroad (‑0.7%). This figure was affected by a sharp drop in orders from the eurozone (‑13.1%). Orders from the non-eurozone grew by 7.8%. Once again, the monthly comparison was dominated by large orders; excluding these, there was a fall of 0.8% (January: ‑3.0%).

The individual branches within the manufacturing sector saw differing developments in February: mechanical engineering clearly increased its output (+10.7%), and this was also true of pharmaceutical products (+6.6%) and chemical products (+3.1%). In contrast, orders declined particularly in the fields of electrical equipment (-1.9%), metal production (-5.3%) and especially in the important field of cars and car parts (‑8.1%).

Following the sharp set-back – mainly relating to large orders – in January, new manufacturing orders stabilised at a low level in February. In the two-month comparison, which is less susceptible to fluctuations, they dropped clearly, by 6.3%. Indicators of sentiment like the ifo Business Climate and purchasing manager indices brightened recently and, taken together with the latest stabilisation in demand, this could indicate that the economy is gradually bottoming out.

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¹ Press release by the Federal Statistical Office of 5 April 2024.