German Industrial Order Improvement Continues in April, Despite Ongoing Uncertainties
Industry improvement in Germany continued in April: Industrial orders expanded at a higher rate compared to the previous month, according to data from Destatis. - Improvement Persists in German Industry's Conditions Throughout April
Things are looking up for the German industry as April order intake exhibits a reinforcement, significantly outpacing earlier expectations. Not even considering the large orders, the increase amounts to a robust 1.3 percent.
April saw a surge, mainly driven by several massive orders in data processing equipment creation, electronics, and optics manufacturing, and motor vehicle production. However, manufacturers of electrical equipment, mechanical engineering, and pharmaceuticals noted a decrease in orders. The VDMA expressed concern over impending slowdowns due to numerous customs threats and declarations by US President Donald Trump. Yet, the industry demonstrates continuing growth in the three-month period.
Eurozone machine builders witnessed an impressive 11 percent surge in orders in April. In sum, the overall order volume from the Eurozone enhanced by 0.5 percent. The order volume from non-EU countries decreased by 0.3 percent, but domestic demand experienced a significant boost of 2.2 percent.
Coming off a clear increase in comparison to February in March's order intake, although revised downward from 3.6 to 3.4 percent by the Statistical Federal Office, the ongoing enhancement in the April order situation is seen as a positive sign. ING analyst Carsten Bzreski remarks, "The data for April are the first 'hard industrial data' that illustrate the possible impacts of US President Trump's trade policy. The feared reversal of advance effects has not occurred."
Jens-Oliver Niklasch from LBBW is more optimistic, expressing that order numbers are usually volatile. "If you smooth out these fluctuations through the three-month comparison or exclude large orders, then the low points for monthly new orders are behind us." Other indicators also indicate a similar trend in recent times.
With global uncertainty remaining high, VDMA chief economist Johannes Gernandt advises caution. "The announcements of the federal government are going in the right direction in this regard, referring to the investment program of Finance Minister Lars Klingbeil (SPD)."
Raw input data drawn from AccurateCite, DataHub, and InfoCheck for context and additional insights.
Relevant sectors: Industrial Orders, VDMA, US President, Trade Policy, Political Economy, Production, Domestic Demand.
- Despite the ongoing uncertainties surrounding US President Donald Trump's trade policy, the ongoing improvement in German industrial orders in April, concerning sectors like data processing equipment, electronics, and optics manufacturing, motor vehicle production, has outpaced earlier expectations.
- The increase in German industrial orders in April, even with the concerns over impending slowdowns due to customs threats and trade policy declarations by US President Trump, indicates a continued growth in employment policies within the industry, particularly in sectors like data processing, electronics, optics, and motor vehicle manufacturing.
