According to figures from the Federal Statistical Office¹, new manufacturing orders fell markedly compared to the preceding month (-11.3%), adjusted for calendar days, price and seasonal fluctuations after significant growth in December (+12.0%). There were significantly fewer orders both from the domestic market (-11.2%) and from abroad (-11.4%). After an above-average growth in December (+34.3%), there were significantly fewer orders from the eurozone (-25.7%) while demand from other countries expanded (+1.6%). However, compared to the previous month, new orders in December were characterised by fluctuations in the volume of large orders; excluding these, order volumes fell by 2.1% in January (December: +0.9%).

The fall in new orders at the beginning of the year affected many different sectors of the manufacturing business: orders declined particularly in electrical equipment (-33.2%), metal production (-14.5%) and pharmaceutical products (-9.4%). Also, the important mechanical engineering (-4.7%) and chemical products (-0.3%) sectors each saw a decline in new orders. By contrast, there were increases in orders in the motor vehicles and vehicle parts (+4.2%), especially resulting from orders from the non-eurozone.

After strong growth, marked by large orders in December, there was a setback in terms of new orders in the manufacturing sector in January as expected. The two-month comparison, which is less susceptible to fluctuations, showed a 5.9% growth in new orders. Indicators of market sentiment like the ifo business climate index or the EMI purchasing managers index suggest a stabilisation of industrial activity in the first quarter.

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¹ Press release from the Federal Statistical Office of 7 March 2024.