When a high demand for industrial products coincided with supply chain problems after the first phase of the COVID-19 crisis, establishments had not been able to complete all incoming orders so that unfilled orders were piling up, Destatis said in a release. That trend, however, does not continue at present.
New orders in manufacturing declined by 4 per cent in September this year compared with August, while turnover rose slightly by 0.2 per cent against the backdrop of the Russia-Ukraine conflict and the energy crisis.
New orders in nominal terms were thus lower than the turnover of establishments for the first time since May 2020. This means that more orders were completed than newly received.
However, the stock of orders still is on a very high level despite the latest decline. The stock of orders was a calendar-adjusted 6.9 per cent higher in September this year than in September 2021.
Compared to August this year, the domestic stock of orders slightly decreased in September by 0.1 per cent and the foreign one by 1.3 per cent. In the consumer goods sector, the stock of orders was 0.4 per cent higher than in the previous month.
The range of the stock of orders was down to 7.7 months in September this year after standing at a minimum of 8.0 in each month since March 2022.
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.
ALCHEMPro News Desk (DS)
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