The key facts

  • German industrial orders rose 4.4% month-on-month in September, below expectations of 4.6%
  • Growth was driven by the automotive sector (+10.5%) and machinery (+8.3%), while orders for other transport fell 10.4%
  • On a year-over-year basis, orders rose 3.3% after calendar adjustment

A rebound after the sharp August drop

Industrial orders in Germany recovered in September after a sharp decline the previous month, according to preliminary data from the Federal Statistical Office Destatis, published on Thursday. Real new orders in manufacturing rose by 4.4% compared with August, but came in below market expectations, which had pointed to growth of 4.6%. The recovery followed a downwardly revised drop of 10.1% in August.

Automotive and machinery versus other transport

The main driver of growth was the automotive sector, where new orders increased by 10.5%. Orders for machinery and equipment also rose by 8.3% compared with the previous month. In contrast, orders for other transport equipment — aircraft, ships, trains and military hardware — fell by 10.4%.

Domestic demand grew faster than foreign demand

Domestic orders in September increased by 6.6%, while foreign orders rose by 2.8%. Orders from the eurozone grew by 4.5%, while those from countries outside the eurozone rose by 1.6%. On a year-over-year basis, after calendar adjustment, industrial orders grew by 3.3%.