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Manufacturing sector records an increase in new orders

Manufacturing sector records an increase in new orders

Manufacturing sector experienced a 0.2% month-on-month increase In the month of September 2023. That comes following adjustments for seasonal and calendar variations. This released upon the Federal Statistical Office (Destatis) indicating that real (price-adjusted) new orders. A more comprehensive assessment through a three-month comparison revealed that new orders recorded a 3.9% decline. That was during the third quarter of 2023 in comparison to the previous quarter. When large-scale orders are excluded from consideration, new orders demonstrated a decline of 2.2%. Those data in September 2023 in contrast to the prior month.

It is noteworthy that a significant revision undertaken for the provisional data. Which signaling that new orders in August 2023 actually rose by 1.9% when compared to July 2023. Deviating notably from the initial estimate of a 3.9% increase. This revision for August 2023 was necessitated by inaccuracies in the reported data within the sector concerned with the “manufacture of computer, electronic, and optical products.

The index representing new orders in the manufacturing domain for the month of September 2023 exhibited a confluence of contrasting trends. The substantial increase in new orders was primarily attributed to the robust performance of the “manufacture of machinery and equipment” sector. As it registering an impressive 8.5% growth when accounting for seasonal and calendar adjustments. Moreover, positive impacts on the overall sector’s performance were evident due to heightened new orders in the manufacture of fabricated metal products. That except machinery and equipment (8.5%) and the manufacture of basic metals” (8.7%).

Also Read: US Nonfarm Payrolls of October Fall Short of Projections

Conversely, the manufacturing sector encompassing computer, electronic, and optical products experienced a pronounced decline in new orders. Characterized by a substantial 12.5% decrease. Thereby exerting a notable impact on the sector’s overall performance. It is pertinent to note that in August 2023, this sector had reported a remarkable 19.9% surge in new orders. Rendering the subsequent downturn in September particularly pronounced. Additionally, the overall outcome was negatively influenced by reductions in new orders observed within the automotive industry (2.5%) and the manufacturing of other transport equipment, including aircraft, ships, and trains (9.7%).

Source: Statistisches Bundesmat (Destatis), 2023

Mixed Performance in Orders and Turnover

During September 2023, new orders exhibited growth in comparison to the prior month in both the intermediate goods sector (0.9%) and the capital goods sector (0.7%). Conversely, the consumer goods sector experienced a significant decline of 8.4%.

In the international sphere, foreign orders witnessed a notable upswing of 4.2%. With new orders from the euro area witnessing a robust increase of 6.2%. And orders from the rest of the world growing by 2.9%. Conversely, domestic orders registered a decline of 5.9%.

In a related development, the turnover within the manufacturing sector for September 2023 revealed a notable decrease of 1.6%. That when compared to the preceding month.

According to provisional data, the actual turnover in the manufacturing sector, adjusted for seasonal and calendar variations, experienced a 1.6% reduction in September 2023 when compared to the preceding month. When considering turnover adjusted for calendar-related factors, it was 2.3% lower in September 2023 than in the same month of the previous year, September 2022. Upon revisiting the provisional data, it was revealed that there was a 0.5% decline in turnover for August 2023 in comparison to July 2023, contrary to the initially reported figure of +0.4%. Notably, this significant revision was attributed to the previously mentioned inaccurately reported data.

Source: Statistisches Bundesmat (Destatis), 2023

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