In October 2024, new orders in manufacturing fell by 1.5% month-on-month after seasonally and calendar-adjusted adjustments. Excluding large-scale orders, orders rose by 0.1% month-on-month. The three-month comparison shows a 2.7% increase in total orders compared to the previous period. New orders, excluding large-scale orders, fell by 0.7%. After revising the preliminary results
new orders in September 2024 rose by 7.2% compared to August. This significant adjustment is due to large-scale orders in shipbuilding that were reported late. These orders had a significant impact on the overall result in October 2024. Despite the improvement in some sectors, new orders in manufacturing fell significantly in October. According to provisional figures from the Federal Statistical Office (Destatis), this trend continued in September. The increase in orders in September was the result of a large-scale industrial project in the shipbuilding sector.
The data points to challenges facing the manufacturing sector, but some sectors have shown good growth. For example, the basic metals sector has seen a significant increase in orders. The electronics and optics sector has also seen a significant improvement in new orders. These increases have contributed to the improvement in the overall results despite the decline in some other sectors. These sectors appear to be innovative or growing areas of demand due to current global trends.
It is important for companies to continue to focus on these sectors to drive sustainable growth in the future. In addition, the manufacturing sector can be significantly affected by global challenges such as economic crises or political volatility. However, demand in some areas such as electronics and metals can support the stability of the sector. Companies in these sectors should look for opportunities to expand their market share and strengthen their production strategies. Increasing innovation and improving production efficiency are key to sustaining growth in these areas.
New orders in the intermediate goods sector increased by 0.9%
In October 2024, the development of new orders varied significantly across the various branches of manufacturing. The machinery and equipment manufacturing sector recorded a significant decrease of 7.6%, while orders in the automotive industry fell by 3.7%. In contrast, a significant increase in the basic metals sector (+10.2%) and the computer, electronics and optics sector (+8.0%) contributed to improving the overall result.
With regard to goods, new orders in the intermediate goods sector rose by 0.9%, while the consumer goods sector recorded an increase of 4.2%. In contrast, the capital goods sector fell by 3.6%.
The data also show a mixed impact of domestic and foreign demand. Domestic orders fell by 5.3%, while foreign orders saw a slight increase of 0.8%.
When looking at orders from the euro area, a decrease of 7.6% was observed. In contrast, orders from outside the euro area increased by 6.3%. On the other hand, economic data is witnessing significant fluctuations in different industries, as the performance of each sector varies according to economic conditions and local and international demand. This data shows that some sectors are enjoying an increase in demand as a result of technological innovations and market shifts, while others are experiencing declines as a result of specific challenges, such as the slowdown in the automotive industry or the decline in production in some heavy industries.
These trends also reflect the impact of changes in international markets, where economic tensions or changes in trade policies can affect demand levels. It is important for companies to follow these changes to adapt their production and supply strategies in line with current trends.
Stakeholders should make efforts to increase demand in sectors experiencing a decline, by investing in innovation or improving production efficiency.
Trading in the manufacturing sector by 1.2% compared to the previous month
In October 2024, the turnover in the manufacturing sector decreased by 1.2% compared to the previous month after seasonal and calendar adjustment.
When comparing October 2024 with the same month last year, the sector recorded a decrease of 3.9% in calendar-adjusted turnover.
The revision of the provisional figures for September 2024 shows a decrease of 1.1% compared to August. These figures indicate a significant decline in economic activity in the manufacturing sector in the recent period. Different comparative periods must be considered when analyzing these data. Short-term economic monitoring compares seasonally and calendar-adjusted figures with those from previous months or quarters. These comparisons provide an idea of short-term economic trends and changes in turnover.
On the other hand, year-on-year comparisons, which adjust the results calendar-adjusted, allow for a comparison of data over the long term. Year-on-year comparisons may show performance levels unaffected by seasonal fluctuations or calendar-specific effects. The crisis resulting from the Covid-19 pandemic and the war in Ukraine may affect these data. The data on new orders and sales in manufacturing follow the “Classification of Economic Activities” and include only selected manufacturing branches. They collect information on new orders in German only.
The change rates are based on price indices adjusted for new orders and sales in manufacturing. The indices use the average figure for 2021, set at 100 index points. The X13 JDemetra+ method adjusts the figures for calendar and seasonal effects to ensure accuracy. This method requires careful analysis to prevent seasonal fluctuations from affecting the data.
With this approach, a clearer picture of the actual performance of the sector can be presented compared to previous years.
