The volume of domestic industrial orders rose by 12.3 percent in May, while 8.8 percent more came from abroad. However, analysts in the Reuters poll estimated the overall increase at 15 percent.
“Order data signals that the recession in the manufacturing sector has bottomed out,” said the Ministry of Economy. “However, the low level of orders also shows that the renewal process is far from over,” the office added.
Orders lost 30.8 percent less in May than in February, a month when anti-coronavirus measures were not yet in place. The German government expects the economy to decline by 6.3 percent this year, the most since World War II.
One-fifth of German companies feel threatened by the coronavirus crisis
At the same time, a June survey by the Ifo Institute of Economics found that a fifth of German companies feel endangered by the coronavirus crisis. Service providers are most worried, with 27 percent of companies in the industry rated the survey. It was 18 percent in trade, 17 percent in industry and only two percent in construction.
“In the coming months, we could witness a wave of insolvencies,” said Ifo analyst Stefan Sauer.
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They are most uncertain about the travel agency’s own future, 85 percent are concerned about their existence. There are 76 percent of hotels and 67 percent of restaurants.
55 percent of people employed in the creative industries, artists and entertainers also expressed the same opinion. Behind them was shipping with 50 percent and the film industry with 48 percent. 26 percent of car manufacturers and their suppliers share the same concerns.
Ifo expects the German economy, the largest in Europe, to decline by 6.7 percent this year due to coronavirus. Next year, it should show a growth of 6.4 percent, which would return to the level of the end of 2019.
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