Low demand for German industrial goods caused orders to crash by 6.9 percent in October from the month before, adding pressures on Germany’s manufacturing sector amid the threat of the Omicron variant.
Orders for goods made in Germany dropped 6.9 percent in October, a bigger than expected plunge from September’s 1.8 percent increase, according to figures from the Federal Statistics Office.
Domestic orders went up 3.4 percent but foreign orders declined by 13.1 percent, largely due to the lack of major orders of machinery and equipment from countries outside the European Union. Excluding major orders, the figure still declined by 1.8 percent.
“New lockdowns in Asia are slowing industry in Germany,” VP Bank analyst Thomas Gitzel said. New waves of COVID-19 cases are adding new pressures to the world economy, Gitzel added, which is already experiencing supply chain problems and shortages in raw materials.
Analysts expect that the low demand for industrial goods will keep Germany’s manufacturing sector stagnant for at least the last quarter of 2021.
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