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“Made in Germany” is Back!

August 6th, 2010  |  Published in What's going on in Germany?!

Germany’s industry is recovering unexpectedly fast. A hailstorm of orders is raining down on the train and airplane industries, and manufacturing is once again the economy’s MVP.

The most important aspect of demand is coming from abroad – foreign orders have increased by 5.7%, most of which being large scale orders in air- and space technologies as well as train cars. Domestic business has only grown by 0.3%. The department of commerce has announced expectations that industry will continue to recover, besides the slightly lower demand on domestic trade. The general tenor is that foreign orders will provide the necessary Impulses.

Especially notable is the case of aircraft manufacturer Airbus, who reeled in an approximately eleven billion dollar deal at this year’s ILA.

The businesses in the market were able to attract 3.2 times more orders then in the previous month, nearly double the expected amount. With this unexpected upward trend, the entire German market has shown to be elated in the second quarter. Profiting from this the most are the producers of investment goods, machines and facilities. They could net in a satisfying 6.4% more orders, with the demand from EU countries skyrocketing to a staggering 23.8%. The producers of consumer goods were able to increase business by 0.9%. Producers of intermediate goods like chemicals and metals however suffered from a 0.8% decline in orders.

The branch most suffering from the recession in 2009, is now coming out on top of the new recovery. Machine producers an other heavy industries are finding back to old strength and are rejoicing in the first second of the year over an increase in orders by about a third. “It is the second best quarterly report in orders since the reunification – only directly after the crisis was there a larger increase” comments DekaBank-analyst Andreas Scheuerle.

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