Incoming orders for industry cloud over further

Other forms of employment contracted slightly compared to the previous year. The number of selfemployed people including contributing family members recorded dropped by 59,000 or 1.5 percent down to 3.9 million. The number of people exclusively in marginal employment was at 4.16 million in June, according to preliminary figures from the Federal Employment Agency, much the same as one year previously (up 10,000 or 0.2 percent). The number of unemployed people decreased by a slim 31.100 or 1.2 percent down to 2.5 million. Following seasonal adjustment, the number of unemployed persons increased slightly by 28,000. This increase is not a result of problems on the labour market but a reflection of the inclusion of Ukrainian refugees that started receiving social security at the beginning of June. The unemployment rate in August this year was at 5.5 percent as calculated by the Federal Employment Agency or 3.4 percent according to the ILO definition.

Incoming orders for industry cloud over further

According to preliminary figures, incoming orders for German industry were down by 1.1 percent in July 2022 compared to the previous month following price, calendar and seasonal adjustment. Including large orders, the order volume dropped by 0.8 percent in July. The figures for June 2022 were upwardly revised to minus 0.3 percent. Compared to July last year, new orders were down by as much as 13.6 percent. Demand from at home dropped by 2.5 percent in July compared to June on account of the strong performance that month. Demand from abroad rose eight percent on the back of increased orders from third countries, which grew by around one sixth. At the same time, orders from the euro area were 4.1 percent down on June.

Factoring in the revised figures for June, incoming orders in the second quarter 2022 were 5.6 percent lower than in the previous quarter following calendar and seasonal adjustment. For the first time in six quarters, incoming orders were also negative year on year. Compared to the pre-pandemic level (fourth quarter 2019), the volume of new orders was still 4.1 percent higher. Looking at the origin of new orders in the second quarter, domestic orders dropped by 1.1 percent compared to the previous quarter. Orders from abroad declined by a hefty 8.5 percent. While demand from the euro area slimmed down by 2.2 percent, orders from third countries took a tumble of 12.2 percent.

Among the main groups of industrial goods, demand for intermediates registered its fourth consecutive quarter-on-quarter drop in the second quarter 2022 (down 3.5 percent). Demand from at home and abroad dropped in equal measure. Despite the weak momentum in demand, new orders were still 6.9 percent higher than before the pandemic (fourth quarter 2019).

Capital goods producers received 8.3 percent fewer new orders than in the first quarter 2022. Orders from abroad were particularly low, at minus 12.1 percent. Domestic demand for capital goods lost a marginal 0.8 percent over the same period. Compared to the pre-pandemic level, new orders were 2.8 percent higher at last count.

New orders for consumer goods producers grew 5.3 percent in the second quarter 2022. Domestic orders rose by a solid 8.1 percent, clearly outpacing foreign orders (up 3.5 percent). Incoming orders for this industrial group were 19.6 percent higher than before the pandemic. What’s more, the latest reading on the incoming order index showed a record all-time high for the second time in a row.

At the start of the third quarter 2022, ifo Institute figures on the reach of orders in hand showed a slight drop down to 4.4 production months after rising to a record high of 4.5 production months in April. Among the main industrial groups, orders in hand among consumption goods producers contracted to