Germany – Orders look stronger than they are

At first glance, these are very good figures. This is because incoming orders in German industry “only” fell by 1.5% in October compared to the previous month, after increasing by 7.2% in September according to the latest figures. However, there were an unusually many big-ticket orders in both September and October, this time particularly in shipbuilding. Although these also have to be processed, too, this usually takes place with a considerable delay and over a longer period of time. The core figure of orders excluding large orders is therefore the better indicator for the expected short-term development of production, and this continues to move sideways at a very low level.

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