Signs of Recovery: Demand for German-made Orders on the Rise
Arslan Butt • 1 min read
Europe’s largest economy appears to be showing signs of recovery according to latest economic data. Orders for goods manufactured in Germany registered a sharp increase during the month of June, indicating signs of rebound in the aftermath of the pandemic.
According to data released by the Statistics Office, German-made goods orders increased by 27.9% MoM in June, significantly higher than the 10.4% rise seen during May. However, orders for such goods remain 11.3% lower than the highs seen back in February, before the coronavirus pandemic struck across the world.
The improvement in orders was driven mainly by an increase in domestic demand. Domestic orders were up by 35.3% while orders from overseas rose by only 22%. Automotive orders increased by 66.5% in June, but remained around 12.2% lower than pre-pandemic levels of February.
However, the mood remains cautious in anticipation of a possible reimposition of lockdowns as the number of cases continue to rise. According to a magazine poll, 80% of Germans expect the government to reintroduce lockdowns and restrictions in order to contain the spread of the pandemic.