German industrial orders decline in August

BERLIN, Oct. 6 (Xinhua) -- German industrial orders fell 10.6 percent in August from the previous month, official data showed Tuesday, reversing a strong increase in July.

Steam rises from the cooling towers of a power plant in Niederaussem, in western Germany. (File photo: AFP)

The decline was largely driven by the volatile "other transport equipment" sector, the Federal Statistical Office (Destatis) said. Orders in the sector plunged 61.5 percent month-on-month in August after more than doubling in July, when exceptionally large orders for ships, rail vehicles and aircraft had boosted demand.

The volatility was particularly pronounced in domestic demand, with orders from within Germany falling 17.3 percent in August, compared with a more moderate 5.4-percent decline in foreign orders.

The Economy Ministry attributed the strong month-to-month fluctuations in industrial orders to the growing importance of public procurement, including orders linked to infrastructure and transport projects.

Across major industries, machinery orders fell 4.4 percent and demand for electrical equipment declined 5.3 percent, according to the ministry. Orders in the automotive sector, however, rose 2.8 percent after a sharp drop in the previous month.

Despite weak new orders in August and persistent structural challenges, the overall order situation had improved markedly in recent months, particularly in sectors benefiting from the expansion of artificial intelligence and government procurement, the ministry said.