German Industrial Orders fell due to Weaker Foreign Demand in October

Data showed on Monday that the German industrial orders went down more than expected for October due to weaker foreign demand for capital goods such as cars, further clouding the growth outlook for manufacturers in Europe's largest economy.

Due to pandemic-related scarcity of microchips and other electronic components has caused massive supply bottlenecks and production problems in Germany's mighty automobile industry and other important sectors of the economy.

Figures from the Federal Statistics Office showed that orders for goods 'Made in Germany' dropped 6.9% on the month in seasonally adjusted terms after a revised increase of 1.8% in September.

A Reuters poll of analysts had pointed to a smaller decline of 0.5% on the month.

VP Bank analyst Thomas Gitzel said that new lockdowns in Asia are slowing down the industry in Germany, adding that the current wave of coronavirus infections across the globe was putting a renewed burden on the world economy.

Gitzel added that domestic demand should remain strong, helped by the new ruling coalition's commitment to massive investment in the green economy.

"The decarbonization of the economy requires major investments in new technologies. German industry can and will benefit from this," Gitzel said.

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