Germany: Orders Grow in Manufacturing Sector

Very contrasting economic and social data are coming out of Germany. The German Federal Statistical Office (Destatis) estimates that the order book in the German manufacturing sector increased by 1.6% in September 2024, compared to the results recorded in the previous month. According to Destatis, “the increase in the order book was boosted by the development of the metalworking industry and, in particular, the so-called ‘other vehicles’ construction sector (planes, ships, trains, military equipment), which recorded a 3% growth.” In addition, the production of electrical materials in Germany rose 1.2 percent in September.

Nevertheless, the economic crisis affecting Germany’s major industrial groups continues to spread like wildfire, engulfing also steelmaker ThyssenKrupp, which ended the 2023-24 fiscal year with a €1.5 billion loss. According to Miguel Lopez, the group’s CEO, “in the last fiscal year, the group also suffered from a weak economy. Demand from the automotive, engineering, and construction industries has been very low.” In this context, some “difficult decisions” are expected in 2024-2025, especially for the Steel Europe and Marine Systems divisions.

The economic crisis that has caused massive layoffs cannot but affect the social situation in Germany, where the Organization for Economic Cooperation and Development (OECD) estimates that “in 2023, life expectancy is estimated at 81.2 years, for the first time below the European Union average of 81.5 years and 2.6 to 3 years below the life expectancy of Spain, Italy, and Switzerland.”

“Since 2010,” the OECD report says, “life expectancy in Germany has increased by 0.7 years compared to 1.7 years in the EU. The relatively small increase in Germany is due to rather limited progress in reducing mortality rates. For example, the standardized mortality rate for circulatory diseases is higher than the European Union average, twice as high as in France, and 60% higher than in Spain.”