German industrial orders rose by 1.9 percent in May compared to April, beating economists’ expectations of a 1.5 percent increase. The improvement was broad-based and not limited to one-off large contracts, which suggests the beginning of a recovery in Europe’s largest economy.
Excluding major orders for aircraft, ships, trains and military vehicles, orders were still 1 percent higher than the previous month. Foreign orders grew by 2.2 percent, driven by a strong 11.2 percent jump from the euro zone. Domestic orders increased by 1.3 percent, while orders from outside the euro zone fell by 3.2 percent.
On an annual basis, German industrial orders rose by 6.2 percent, the fastest pace since December last year. The data is especially important for Poland, which is closely tied to the German economy through exports of components, machinery, metals, chemicals and logistics services.
Signs of stabilisation after months of weakness
The positive reading follows several months of subdued performance in German manufacturing. – The fact that the rise is not solely due to volatile large-scale contracts gives us more confidence that the trend may be turning – commented an analyst from a leading German economic institute.
Despite the monthly improvement, the three-month comparison – from March to May against the previous three months – still shows a slight decline of 0.2 percent. This indicates that a sustained turnaround has not yet been confirmed.
What it means for Polish exporters
Poland is one of Germany’s key suppliers of intermediate goods, especially in automotive, machinery and chemical sectors. Any recovery in German industrial output directly boosts demand for Polish products and services.
Recent months have been challenging for Polish exporters due to weak demand from the west. – The rebound in German orders is a very promising signal for our companies, especially those in the automotive supply chain – noted Rafał Hirsch, economic journalist and author of the analysis.
However, he also cautioned that this is not yet a breakthrough. The three-month data still shows a slight contraction, meaning exporters should not expect an immediate surge in orders. The coming months will be crucial to see if the May figures mark the start of a sustainable recovery.
Źródło: wnp.pl, Fot. PAP/EPA/HANNIBAL HANSCHKE
