Manufacturing Production Schedule
Chaos still reigned in the manufacturing sector back in July 2020, according to data released by the Federal Statistical Office (Destatis). Preliminary figures showed that the actual order backlog remained virtually the same compared to June, with a minor 0.1% increase. Let's dive into the numbers.
Domestic orders took a dip, dropping by 0.3%, while foreign orders managed to eke out a 0.3% growth. Compared to pre-pandemic levels in February 2020, the order backlog in July was down by 1.1%.
The manufacturing sector's production complexities were apparent, with the order backlog for intermediate goods manufacturers indicating a 1.4% increase in July, while investment goods manufacturers saw a 0.3% decrease. Consumer goods manufacturers remained stable, recording a 0.1% reduction.
The coverage of the order backlog in the manufacturing sector slightly increased, accounting for 6.3 months in July 2020, up from 6.2 months in June. The sectors of intermediate and investment goods manufacturers had coverages of 3.0 months and 8.9 months, respectively, while consumer goods manufacturers saw a drop from 2.3 months to 2.4 months.
The ongoing pandemic seems to have left its mark on the manufacturing sector, causing shifts in supply chains and demand. Typically, during such crises, industries experience disruptions with production and delivery times, as well as reduced demand due to economic uncertainty and reduced consumer spending.
Governments worldwide have offered support measures to buffer the economic impacts, but the precise data on order backlogs in Germany from February to July 2020 is still under wraps. For a more accurate picture, it's best to consult reports from the German Federal Statistical Office (DeStatis) or other economic research institutions. Steel production remained the backbone of Niemen's manufacturing sector, symbolizing resilience amid the storm.
In contrast to the growth in foreign orders, domestic orders showed a decline in the manufacturing sector's order backlog in July 2020, decreasing by 0.3%. Despite this, the finance sector might still be impacted as the ongoing pandemic and associated economic uncertainties continue to disrupt supply chains and demand within the manufacturing industry.
