Berlin, Jan 9 (IANS) Germany’s industrial sector experienced a sharp decline in incoming orders in November 2024, falling by 5.4 per cent compared to the previous month, official data revealed.
This follows a 1.5 per cent decline in October, intensifying concerns over the recovery of Europe’s largest economy.
The Federal Statistical Office on Wednesday attributed the downturn to a significant drop in large-scale orders from the transport equipment manufacturing sector, including aircraft, ships and trains. While these orders were substantial in October, they did not persist into November, leading to a 58.4 per cent month-on-month decline, the office noted. Excluding these sectors, incoming orders edged up by 0.2 per cent in November.
Other manufacturing industries had minimal impact on the overall figures. New orders in the machinery and chemical sectors increased by 1.2 per cent and 1.7 per cent, respectively, while the pharmaceutical industry reported a 7.2 per cent decline in orders, reports Xinhua news agency, quoting the Federal Statistical Office.
Carsten Brzeski, global head of macro at ING Research, said industrial orders have weakened throughout the past year, averaging a 1-percent month-on-month decline since early 2024.
Wednesday’s data also showed that orders from outside Germany dropped by 10.8 per cent in November compared to the previous month, with orders from non-eurozone countries declining by almost 15 per cent.
Brzeski noted that weak demand and high inventories cloud the outlook for industrial production in the coming months. While the sector may have hit its lowest point, there are no clear signs of a rebound for Germany’s industrial economy.
Germany’s manufacturing sector, contributing more than one-fifth of the country’s total gross value added, has faced persistent challenges in recent years, hampering economic growth. The German economy is forecast to contract slightly in 2024, marking the second consecutive year of decline.
–IANS
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