Incoming orders in German industry again developed very positively in November with a plus of 2.3 percent compared to October. According to surveys, economists had expected a decline of more than one percent. The previous month’s value has also been revised upwards again – to an impressive 3.3 percent. Incoming orders in November 2020 were a good 6.3 percent higher than a year earlier. The companies are making every effort to replenish their stocks, which had shrunk over the pandemic as a result of the production losses. It is noticeable that this applies to all regions: over the year as a whole, domestic and foreign incoming orders are at roughly the same level. There are also no significant differences between the orders from the euro zone and the rest of the world. This is good news and shows widespread support. Naturally, the sectors are hit differently. While the auto industry has to compensate for a deep dent, the chemical industry is doing reasonably well: the order total in 2020 is hardly below that of 2019, and the same applies to the consumer goods industry.
All in all, this is very good news for manufacturing. The “lockdown light” in November seems to have had little effect on the industry. It is therefore to be expected that the defaults due to the tightening in December and now in January will remain manageable.
Author: Martin Moryson, Chief Economist Europe
Livestream on December 14th, 2020 from 6 p.m .:
With Hans-Werner Sinn, former President of the Ifo Institute: Corona and the miraculous increase in money in Europe
– Here is the stream! –