German Industrial Orders Decline: Impact on Economy in 2023

Summary

  • Comparing a less volatile three-month period from October to December 2023, industrial order records indicated a 0.1% increase compared to preceding months.
  • According to the Ifo Institute, the consistent reduction of manufacturing orders is becoming an increasing concern for Germany’s economy.
  • Ifo’s surveys highlight that 36.9% of manufacturing firms reported an order deficit in January, a significant rise from the recorded 36.0% in October.
  • A noticeable 5.9% reduction on a yearly basis was reported for calendar-adjusted industrial orders in 2023.

A Three-Month Analysis of Industrial Orders

An analysis of industrial orders over a comparatively stable three-month period from October to December 2023 displays a 0.1% increment compared to the prior three months.

Ifo Institute’s Standpoint on Manufacturing Orders

The increasing shortage of orders in the manufacturing sector is progressively weighing down the German economy, as indicated by the Ifo Institute on Monday.

Manufacturing Companies Facing Order Shortage

In January, there was a reported order deficit by 36.9% of manufacturing firms, showing an increase from the 36.0% recorded in October, data from Ifo’s surveys suggest. In contrast, this proportion was only 20.9% a year ago.

2023 Industrial Orders Statistics

The year 2023, in its entirety, witnessed industrial orders reduce by a substantial 5.9% compared to the preceding year when adjusted for the calendar.

Considering the influence the German economy has within the EU, these developments in the industrial orders could become consequential to the forex market, particularly concerning the performance of the Euro.

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