Industry in a downward trend: Rejection of orders is putting a strain on the German economy

The sectors that are particularly important to the economy, such as automobiles, chemicals and mechanical engineering, are affected by this downward trend. Observers see this as another warning signal for the industrial economy.

Economists had originally expected a disadvantage of just 2 percent, but found that the increase in orders rose to 3.9 percent in July – well above the 2.9 percent first published. What is particularly noticeable is the strong trend in domestic orders, which fell by 10.9 percent in August.

There is also a disadvantage in orders from abroad: they fell by 2.2 percent compared to the previous month. The number of new business with countries in the euro zone even fell by 10.5 percent, while orders from German industrial companies with partners outside the euro zone increased by 3.4 percent.

This means that the crisis is intensifying in industrial sectors that are so important to the economy and is putting a strain on the entire economy. “The leading indicators are falling, the forecasts are falling, the bad news doesn’t stop,” explains LBBW expert Jens-Oliver Niklasch and adds: “Everything feels like a recession.”