Economy Order backlog in German industry rises for the first time since 2023
The order backlog in German industry has grown again for the first time this year. According to the Federal Statistical Office in Wiesbaden, it rose by 1.0% in July, adjusted for seasonal and calendar effects compared to the previous month.
18.09.2024, 10:45
SDA
"This was the first month-on-month increase in the order backlog since December 2023," said the authority. However, adjusted for calendar effects, there was a drop of 4.3% compared to the same month last year.
Growth in the construction of aircraft, ships, trains and military vehicles in particular contributed to the increase in the order backlog in July. Here, the order backlog was 2.6% higher than in the previous month due to large orders. There was also an increase in the manufacture of electrical equipment (+3.4%), while the order backlog in the important industrial sector of mechanical engineering shrank (-1.0%).
Overall, open orders from Germany increased by 2.1% in July compared to the same month last year, while the order backlog from abroad was only slightly higher at 0.4%.
Order backlog sufficient for a good 7 months
The order backlog grew slightly to 7.3 months in July (June: 7.2 months). Previously, the cushion of orders built up by German industry during the coronavirus slump had shrunk for six months in a row. The range of coverage indicates how long companies would theoretically have to produce without new incoming orders in order to process the orders if turnover remained the same.
Weak demand is causing problems for German industry. In addition, the industry association BDI recently criticized structural problems in Germany - such as the rise in energy prices, the high level of bureaucracy and deficits in the transport infrastructure.
