German industry recorded a significant slump in orders at the beginning of the year. Dem Federal Statistical Office
According to reports, they fell more sharply in January than they had in two years. At the same time, production was cut for the second month in a row.
New business shrank by 11.1 percent compared to the previous month, as the Federal Statistical Office announced. This ended a series of four increases in a row, which included large government orders for armor and infrastructure contributed. Economists had previously expected a less severe decline.
Industry, construction and energy producers also produced 0.5 percent less in January than in the previous month. There was already a minus of 1.0 percent in December. Economists had predicted growth of 1.0 percent.
Oil prices continue to rise
The Federal Ministry of Economics fears as a result of this
Iran War further setbacks for the economy. Because of rising gas and oil prices on the world markets, “the risk of a setback in the expected recovery of the industrial economy has increased significantly,” the ministry said. The price of oil rose above the $100 per barrel mark at the beginning of the week.
While domestic demand fell by 16.2 percent in January compared to the previous month, demand from abroad fell by 7.1 percent. Demand from the Eurozone fell by 7.3 percent and that from the rest of the world by 7.1 percent.
Energy production increased
Industry alone produced 2.5 percent less in January than in the previous month. The manufacturers of metal products
reduced their production particularly sharply by 12.4 percent. There were also significant declines in der Pharmaceutical industry with minus 11.2 and for manufacturers of data processing equipment, electronic and optical products with minus 6.8 percent.
In contrast, energy production increased significantly by 10.3 percent. “The significant increase in this area could be due to the exceptionally low temperatures in January 2026,” the statisticians said. The many days of ice and frost also had an impact on civil engineering, such as the construction of roads, railway lines, bridges and tunnels: production in civil engineering fell by 7.5 percent compared to the previous month. Nevertheless, construction production grew overall by 2.9 percent.