Incoming orders in industry: This is how bad the declines are

The incoming orders of the German industry have understandably collapsed brutally due to the Corona crisis. Today we can see the value for the month of May. According to the publication of the Federal Statistical Office, it is a year-on-year decline of 29.3 percent. April was the big Shut Down month, and in May things should have already started to pick up again? In the (in our opinion) less important month comparison, we now see a year-on-year increase of 10.4 percent from April to May, with expectations at +15 percent. The chart shows each month as a bar. One can see: There’s a lot of catching up to do from the losses of March and April. Especially since the current growth in new orders is based on the lower initial values!

source: tradingeconomics.com
Chart der Auftragseingänge im Langfristverlauf

Here are more details of the statisticians in the wording:

The corona crisis has thus been dominating developments in the manufacturing sector for some months now. Compared with February 2020, the month before the beginning of the restrictions imposed by the corona pandemic in Germany, order intake in May 2020 fell by 30.8% in seasonally and calendar-adjusted terms.

Compared with the previous month, domestic orders in May 2020 were up 12.3%. Foreign orders rose by 8.8%. New orders from the Eurozone increased by 20.9 %. Orders from the rest of the world rose by 2.0 % compared to April 2020.

For manufacturers of intermediate goods, new orders in May 2020 were slightly higher than in the previous month at 0.4 %. Manufacturers of capital goods recorded an increase of 20.3%. Orders for consumer goods rose by 4.7 %.

In the automotive industry, order intake – after very low orders in April 2020 – rose again significantly in May. However, it is still a good 47% lower than in February 2020.

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