Economy Orders for German industry surprisingly continue to rise

A ray of hope for the ailing German industry: In July, orders rose by 2.9 percent compared to the previous month thanks to larger orders.

This was reported by the Federal Statistical Office (Destatis) in Wiesbaden. This is the second increase in a row, after incoming orders had previously fallen continuously for five months.

Analysts were positively surprised by this. They had expected a decline of 1.7 percent on average for July. For June 2024, the revision of the preliminary results showed an increase of 4.6% compared to May 2024 (previously: 3.9%).

A year-on-year comparison also showed a positive trend. In this view, the Federal Office reported growth of 3.7%, following a decline of a revised 11.2% in the previous month.

Large orders ensure growth

Large orders were responsible for the positive result in July. Without these, incoming orders would have been 0.4% lower than in June, the report continued. The three-month comparison showed a positive development. From May to July, incoming orders were 1.7 percent higher than in the previous three months.

The positive development of incoming orders in July was due in particular to the significant increase in "other vehicle construction" - which includes aircraft, ships, trains and military vehicles. According to the figures, new orders here were 86.5 percent higher than in the previous month due to several large orders.