German industrial orders climb again in August 2020

German industrial orders rose again in August as the economy extends its recovery from the pandemic-induced shutdowns in the spring, federal statistics agency Destatis said on Tuesday, October 6.

Orders in Europe’s top economy increased by 4.5% compared with the previous month, beating expectations of a 3% rise, according to a survey of analysts by Factset. 

Industrial orders rose 3.3% month-on month in July.

“The catching-up process of new orders in manufacturing continues at a remarkable pace,” the economy ministry said in a statement.

Germany’s key car industry has even bounced back to pre-crisis levels, the data showed, with orders up 0.3% compared with February.

In total, industrial orders are just 2.2% down on August 2019, Destatis said. 

Like other countries, Germany introduced restrictions to limit the spread of the coronavirus in March that brought much of industry to a standstill. 

But orders returned strongly as factories and businesses started to reopen in May.

Economy Minister Peter Altmaier said last month that Germany was experiencing a “V-shaped” economic recovery.

Berlin has raised its 2020 growth outlook to a 5.8% fall from an earlier forecast of a 6.3% drop.

Orders in August were driven by foreign demand, according to Destatis. 

Domestic demand rose by 1.7% month-on-month, but orders from outside Germany jumped 6.5%, booming by 14.6% in the euro area.

However, rising infection rates both at home and internationally may put a damper on the upwards trend in the months ahead.

“It is hard to see how the German manufacturing sector could escape another round of lockdowns in major trading partners,” ING bank analyst Carsten Brzeski warned. – Rappler.com