Automotive Exports December 2022

Germany ‘on course for
recession’ as industrial
orders drop
German industrial orders have dropped by more than
expected in September as foreign demand slumped, putting
Europe’s largest economy on course for recession, data
shows.
New orders fell by 4.0 percent on the month on a seasonally
and calendar-adjusted basis, the Federal Statistics Office said.
Germany staved off the threat of recession in the third
quarter with unexpected growth, but the economy remained
in choppy waters as high inflation driven by a painful energy
standoff with Russia surged, data showed.
The orders data underlined the headwinds Germany is facing
as the sluggish global economy, materials shortages and the
energy crisis hamper production.
Headed towards recession
“The German economy is on course for recession - that
much can be deduced from the disastrous new orders,” said
Thomas Gitzel, chief economist VP Bank.
While domestic orders increased by 0.5 percent, foreign
orders plunged b y 7.0 percent. Within the euro zone, orders
were down 8.0 percent while orders from outside the euro
zone dropped 6.3 percent.
“The high level of new orders that had set in after the
coronavirus pandemic as a result of catch-up effects appears
to have come to an end,” the economy ministry said.
Decreases in the automotive and mechanical engineering
sectors in particular, down 9.0 percent and 8.1 percent
respectively, dragged down the overall index, according to the
ministry.
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