Industrial orders plunge 6.1 percent in October

Industrial orders plunge 6.1 percent in October
Photo: DPA
German industrial orders fell by 6.1 percent in October on a 12-month basis, and were 9.5 percent lower from the level the previous month, the Economy Ministry said on Friday as the biggest European economy remained mired in recession.

Analysts polled by Dow Jones Newswires had anticipated a slight yearly increase of 0.4 percent. All major German industrial groups reported fewer orders than in the previous month, a ministry statement said.

Domestic as well as foreign orders fell in October, it said, the the annual

decrease was slightly better than September’s rate of 8.3 percent, which came

as Germany officially entered recession with two consecutive quarters of

economic contraction.

The latest figures suggested that any rebound was months away, and came as

the German central bank forecast that economic activity would contract by a

further 0.8 percent in 2009. In 2010, the Bundesbank expected the economy to expand by 1.2 percent.

Germany, still the world’s leading exporter, has been hit in particular by slumping demand in eurozone partner countries, the economy ministry said.

Its data confirmed information published recently by Germany companies, notably auto manufacturers, chemical groups, and makers of machine tools. The machine tool federation VDMA announced this week an annualised 16 percent drop in October orders.

The trend is nowhere near an end moreover, the car maker BMW saw its sales fall by 25 percent in November and heavy truck maker MAN has said it expects sales to plunge by 30 percent next year.

With orders still in a tailspin, “industrial production will continue to fall in the months to come,” the Economy Ministry forecast.