In January this year the volume of incoming orders to German industry dropped by 8.0% after adjustments for price and season as compared to January 2008. Thus, this shrinking process has even accelerated given that in December 2008 the reduction had been 7.6% as compared to December 2007. The volume of major orders, however, was above average. Orders from abroad fell by 11.4%.
Orders from countries outside the Eurozone fell by -18.2% and those from within the Eurozone by 1.2%. Domestic orders were down by 4.3 % in January this year as compared to January 2008.
The drop in orders affected all major lines of industry. The biggest drop was registered by manufacturers of investment goods (-9.1%) while producers of intermediate inputs and consumer goods suffered losses of 6.8% and 6.7% respectively in incoming orders.
Comparing the two-months periods of December 2008/January 2009 to November/October in 2008 incoming orders to industry fell by 14.4% after adjustments for price and season. Domestic order decreased by 10.8% and that from abroad by 17.5%. Orders to manufacturers of intermediate inputs and investment goods fell by 16.1% and 14.5% respectively. With regard to the consumer goods industry the drop in incoming orders amounted to 6.7%.
Comparing the average order volume of the two-months period of December 2008/January 2009 to the average order volume of the same period one year ago, incoming orders fell by 33.2% with orders from abroad dropping by 37.1% and those from within Germany by 28.3%.
The German ministry for economic affairs predicts a continuation of this downward trend in incoming orders to German industry.