In July 2022 compared to June 2022 the domestic stock of orders increased by 0.3 per cent while foreign ones rose by 0.8 per cent, according to a release by the Federal Statistical Office (Destatis). The stock of orders rose by 0.6 per cent for manufacturers of intermediate goods. In the consumer goods sector, the stock of orders was 0.8 per cent lower than in the previous month.
Germany’s price adjusted stock of orders in manufacturing in July 2022 increased by a seasonally and calendar adjusted 0.7 per cent MoM compared to June 2022. The stock of orders in July 2022 was 12.6 per cent higher than in July 2021. Thereby, unfilled orders in manufacturing reached a new peak since the beginning of the series in the year 2015.
New orders decreased by 1.1 per cent and turnover fell by 1.8 per cent. As in the preceding months, the volume of new orders was slightly higher than the volume of turnover in manufacturing in July 2022. The excess demand is likely to be due to the continuing acute shortage of intermediate products. Many enterprises still have difficulties completing their orders as supply chains are interrupted because of the war in Ukraine and distortions, that have been caused by the COVID-19 crisis, persist.
According to the ifo Institute for Economic Research, as much as 73.3 per cent of the industrial enterprises surveyed complained about bottlenecks and problems in procuring intermediate products and raw materials in July 2022. Even though this value slightly decreased compared to June (74.1 per cent), it is still exceptionally high in long-term comparison.
The Federal Statistical Office shows the relationship between material shortages and industrial activity in an analysis with continuously updated figures. The (non-calendar and non-seasonally adjusted) range of the stock of orders stood at 8.0 months (June 2022 also: 8.0 months) in the manufacturing sector in July 2022. For manufacturers of intermediate goods, the range was 4.0 months (June 2022: 4.1 months), and for consumer goods it was 3.5 months (June 2022 also: 3.5 months), added the release.
The range indicates for how many months establishments, theoretically, would have to produce goods until all orders on hand are filled — with turnover remaining constant and without any new orders being received. It is calculated as the ratio between the current stock of orders and average turnover of the last 12 months in the respective branch.
Fibre2Fashion News Desk (NB)