Germany’s manufacturing sector saw a significant rebound in new orders in September 2024, with a month-on-month increase of 4.2%, according to provisional figures released by the Federal Statistical Office. This growth, adjusted for seasonal and calendar variations, marks a positive shift after a decline in August. Excluding large-scale orders, new orders were still up by 2.2% from the previous month.
The three-month comparison also reflected positive momentum, with total new orders rising by 4.2% in the third quarter of 2024 compared to the second quarter. However, excluding large orders, new orders showed a slight decline of 0.6%. The revised figures for August revealed a larger-than-expected drop of 5.4% compared to July, following an initial estimate of a 5.8% decrease.
Germany’s Manufacturing Orders Surge 4.2% in September 2024
The growth in new orders in September was due to a notable surge in the “manufacture of other transport equipment” sector, which includes aircraft, ships, trains, and military vehicles. Large-scale orders in this sector resulted in an extraordinary rise of 117.1%. The automotive industry also contributed positively, with new orders increasing by 2.9%. However, the overall result was tempered by declines in the manufacture of basic metals, which saw a drop of 10.0%, and machinery and equipment, which fell by 3.6%.
On the sector level, new orders for capital goods saw a strong increase of 8.3%, while consumer goods rose by 3.8%. In contrast, the intermediate goods sector experienced a decline of 2.4%.
In terms of geography, domestic orders rose by 3.6%, while foreign orders increased by 4.4%. Notably, orders from the euro area grew by 14.6%, while orders from non-eurozone countries dropped by 1.6%.
The overall outlook remains mixed, with growth in capital and consumer goods offset by a dip in intermediate goods. Additionally, while domestic orders showed modest growth, the strong performance of orders from the euro area suggests that Germany’s manufacturing sector remains resilient despite global uncertainties.
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