Press release No. 372 of 19 September 2023

Stock of orders in manufacturing, July 2023
-1.0%, in real terms, on the previous month (seasonally and calendar adjusted)
-3.9%, in real terms, on the same month a year earlier (calendar adjusted)

Range of the stock of orders
7.2 months

WIESBADEN – The real (price adjusted) stock of orders in manufacturing was down 1.0% in July 2023 month on month after seasonal and calendar adjustment, according to provisional figures of the Federal Statistical Office (Destatis). The calendar adjusted stock of orders was 3.9% lower in July 2023 than in July 2022.

 

The month-on-month decline in the stock of orders was primarily due to the negative development of unfilled orders in the automotive industry, which were down 2.1% in July 2023 compared with the previous month after seasonal and calendar adjustment. Declines observed in the manufacture of machinery and equipment (-0.7%) and electrical equipment (-2.2%) also negatively impacted the overall result. The manufacture of electrical equipment includes electric motors, batteries and household appliances, among other products.

Unfilled domestic orders in July 2023 were down 0.8% on June 2023 and the stock of foreign orders was down 1.0%.

Producers of capital goods saw the stock of orders decline by 0.8%. The stock of orders for producers of intermediate goods contracted by 0.9%, and producers of consumer goods experienced a decrease of 3.1%.

Range of the stock of orders unchanged at 7.2 months

In July 2023, the range of the stock of orders was 7.2 months, as was the case in June 2023. For producers of intermediate goods, the range of the stock of orders also remained unchanged at 3.8 months. The range declined to 9.9 months (June 2023: 10.1 months) for producers of capital goods and to 3.4 months (June 2023: 3.5 months) for producers of consumer goods.

Assuming turnover remains constant and no new orders are received, the range indicates the number of months local units would, in theory, have to produce goods in order to fill all orders on hand. It is calculated as the ratio between the current stock of orders and average turnover of the last twelve months in the respective branch.

Methodological notes:

The differing comparative periods must be taken into account in all press releases on short-term indicators. Short-term economic monitoring focuses on comparisons of seasonally and calendar adjusted figures with those of the previous month. These reflect short-term economic trends. Year-on-year comparisons of calendar adjusted results enable long-term comparisons of levels and are not influenced by seasonal fluctuations and calendar effects. The results of month-on-month and year-on-year comparisons may differ considerably because of the Covid-19 crisis and the war in Ukraine.

The stock of orders comprises all new orders received by the end of the reference month which have neither generated any turnover nor been cancelled by that time. The rates of change are based on the price adjusted index of the stock of orders in manufacturing. The average figure for 2015 is used as the basis of the index and set to 100 index points (2015 = 100). The X13 JDemetra+ method was used for calendar and seasonal adjustment. The stock of orders is covered and evaluated in accordance with the Classification of Economic Activities (WZ 2008). In the process, information on the stock of orders and on new orders is only collected in selected branches of manufacturing. The manufacture of motor vehicles, trailers and semi-trailers (economic activity WZ 29) is referred to as the "automotive industry" in this press release.

More information:

Detailed data are available from the GENESIS-Online database (42155-0004 indices of the stock of orders and 42113-0001 Ranges of the stock of orders).

A dossier on the "Short-term indicators" page of the Federal Statistical Office's website provides an analysis of the relationship between material shortages, new orders, production and prices in industry. Detailed information on production in energy-intensive industrial branches (only in German) is available on the "Industry, manufacturing" page.