• Germany's news in English

Industry orders post sharp decline

The Local · 7 Sep 2010, 13:47

Published: 07 Sep 2010 13:47 GMT+02:00

Facebook Twitter Google+ reddit

Orders fell by 2.2 percent on the month, figures from the Economy Ministry showed, following an upwardly revised gain of 3.6 percent in June.

The data wrong-footed analysts surveyed by Dow Jones Newswires, who had forecast a gain of 0.4 percent. "Orders growth continued to weaken after the extraordinarily strong orders dynamic early in the year," the ministry said in a statement.

"The result for the current month was depressed by significantly below-average large orders," added the ministry.

The drop was caused by a marked 3.7-percent dip in foreign demand. Domestic orders fell a more modest 0.3 percent. Nevertheless, taking the months of June and July together, which gives a better idea of the trend, industrial orders in Germany rose by 2.4 percent. The monthly drop was the biggest since February 2009, said Carsten Brzeski, economist at ING bank in Brussels.

"However, the drop is no reason to worry. Instead, we would characterise it as the expected correction after several strong months," said the analyst in a research note.

Heinrich Bayer, from Germany's Postbank agreed, saying: "All in all, despite the sharp decline compared to the previous month, the data do not suggest that the upturn in German industry will break down in the short term."

For his part, Alexander Koch from Unicredit termed the result an "expected technical correction."

Germany, the world's second-biggest exporter, has bounced back from a crippling recession in 2009 to register record growth in the second three months of the year, driven by increased demand for its goods around the world.

Berlin is expected to raise its forecast for output growth this year to around 3.0 percent, up from a previous estimate of 1.4 percent, according to media reports.

However, concerns of a double-dip recession in the United States, along with Chancellor Angela Merkel's €80 billion ($102 billion) austerity package passed last week, have raised fears of a slowdown in the second half of 2010.

Postbank's Bayer said: "Towards the end of the year, the upswing in industry could mark a pause."

Story continues below…

Despite the recession, unemployment in the country remained relatively low at 7.6 percent of the workforce in August, with some 3.2 million people out of work.

Industry leaders are increasingly optimistic about the future as well, with business confidence levels rising to where they were before the financial market crisis.

AFP/rm (news@thelocal.de)

The Local (news@thelocal.de)

Facebook Twitter Google+ reddit

Your comments about this article

14:27 September 8, 2010 by William Thirteen
oops, here we go!
Today's headlines
This is how much startup geeks earn in Germany
Photo: DPA

A comprehensive new survey of 143 startup founders shows how much you are likely to be earning at a German startup, from entry level all the way up to sitting on the board.

Man dies after beating for peeing near Freiburg church
The Johannes Church in Freiburg. Photo Jörgens Mi/Wikipedia

A middle-aged man from southern Germany has died after being attacked by a group of men who took umbrage with the fact he was urinating in the vicinity of a church.

The Local List
Seven German celebrities with uncanny doppelgängers
Former Berlin mayor Klaus Wowereit and actor Alec Baldwin. Photo: DPA; Gage Skidmore, Wikimedia Commons

Check out these seven look-a-likes of well known German figures - we admit that some are more tenuous than others...

Israel seeks to buy three new German submarines: report
A Dolphin class submarine. Photo: DPA

Israel is seeking to buy three more advanced submarines from Germany at a combined price of €1.2 billion, an Israeli newspaper reported Friday.

Here’s where people live the longest in Germany
Photo: DPA

Germans down south seem to know the secret to a long life.

More Germans identify as LGBT than in rest of Europe
Photo: DPA

The percentage of the German population which identifies as lesbian, gay, bisexual or transgender is higher than anywhere else in Europe, according to a new study.

'Reichsbürger' pair attack police in Saxony-Anhalt
File photo: DPA.

A "Reichsbürger" and his wife attacked police officers on Thursday, just a day after another Reichsbürger fatally shot an officer in Bavaria.

Five things not to miss at the Frankfurt Book Fair
Photo: DPA

From consulting a book doctor to immersing yourself in an author's world with the help of virtual reality, here are five things not to miss at this week's Frankfurt Book Fair, the world's largest publishing event.

Parents who don't get nursery spot for kid entitled to pay
Photo: DPA

The Federal Court of Justice (BGH) ruled on Thursday that parents whose children don't receive placements in nursery care are entitled to compensation.

Eurowings braces as cabin crew union proclaims strike
Photo: DPA

A union representing cabin crew for Lufthansa's budget airline Eurowings announced that strikes could take place at any time over the next two weeks, starting on Monday.

Sponsored Article
How to vote absentee from abroad in the US elections
10 things you never knew about socialist East Germany
Sponsored Article
Last chance to vote absentee in the US elections
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
Sponsored Article
How to vote absentee from abroad in the US elections
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
Eleven famous Germans with surnames that'll make your sides split
The best ways to get a visa as an American in Germany
jobs available
Toytown Germany
Germany's English-speaking crowd