Order inflow into German industry increased strongly

According to provisional figures by the Federal Statistical Office, the demand for industrial products has strongly increased by 4.0% in adjusted for price and season figures in October. Back in September the demand had fallen by 1.6%. The driving force behind this development are big orders from abroad. From these benefitted in particular the manufacturers of investment goods the order inflow of which increased by 8.1%. With regard to intermediate inputs or consumer goods, here the demand slightly diminished (by -0.4% and -0.8%).

The stimulus to demand came from both abroad and from inside Germany. However, order inflow from abroad increased recently by +5.0 % while the domestic order increase amounted to +2.7 %.

In the two month period from September to October this year the order inflow increased by 1.3% as compared to the two month period July/August 2007. Once again the driving force here was demand for investment goods (+2.5%). The demand for intermediate inputs increased slightly by 0.2% while the orders received by the producers of consumer goods fell by 0.9%. The domestic orders in industry continued decreasing (-0.9%) while those from abroad increased strongly by +3.3%.

Compared to September/October last year the order inflow in industry was up by 7.9%. Orders from abroad increased considerably as compared to 2006 by +13.3%. However, domestic orders were also significantly above last year´s level (+2.6%).

After the demand for industrial products had somewhat fallen over recent months, there has recently been a strong increase due to major orders. Despite the strength of the Euro the demand in industry is still supported to a large extent by foreign demand. Thus, all in all the order situation in the German industry has improved. GERMAN