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Germany’s Manufacturing Order Backlog Hits Record High in March

Analysts say the bulging pipeline may take time to turn into extra output.

Overview

  • Destatis, which reported the figures Wednesday, said the real backlog rose 1.6% from February and 8.4% from a year earlier.
  • The backlog’s reach increased to 8.8 months, the highest since the series began in 2015, which means firms could work nearly nine months at recent sales levels without new orders.
  • Gains spanned all major sectors, led by other vehicle construction such as aircraft, ships, trains and military vehicles up 1.5%, and by data-processing, electronic and optical products up 3.8%.
  • Open orders from domestic clients rose 1.4% in March, while foreign orders climbed 1.7%, signaling demand strength at home and abroad.
  • Economists cautioned that higher energy costs, supply snags and geopolitical risks could slow order processing and curb hiring, with one chief economist warning that gradual job cuts may continue.