New business in German industry has fallen significantly. After two months of consecutive increases, orders fell by 5.8% in August compared to the previous month, the sharpest decline since January, according to the Federal Statistical Office.
Domestic orders slumped by 10.9% in August. Orders from abroad fell by 2.2%. New business with the 20 eurozone countries fell sharply by 10.5%, while business with the rest of the world increased by 3.4%. The hardest hit were categories like aircraft, trains and military vehicles. For the first half of 2024, car sales were down by 4.7%.
Scientific Director of the trade union-affiliated IMK Institute Sebastian Dullien said it is a profound crisis: “The three main key sectors of German industry are all massively affected by the weak phase: automotive manufacturing, mechanical engineering and chemicals.”
