A report from Reuters says that German industrial orders fell unexpectedly in October, as demand at home and from outside the euro-zone weakened.

Contracts for German-made goods were down 0.4% from the previous month. It was also reported that a growing number of companies were applying for state aid, allowing them to keep well-trained staff while putting them on short-time work.

The economy ministry said that industrial orders had stabilised in recent months. “However, activity in the manufacturing industry is still weak, and the manufacturing outlook for the final quarter therefore remains subdued.”

Data shows that industrial orders from domestic customers fell by 3.2%, while demand from those outside the euro zone fell by 4.1%.

Orders from other euro-zone countries jumped 11.1%, helped by bulk orders (without these, overall industrial orders fell by 1.4% in October).

Demand was particularly weak for capital goods such as machines and equipment, whereas orders for consumer and intermediate goods edged up.

Germany’s export-dependent manufacturers are struggling with weaker foreign demand, tariff disputes sparked by the USA’s ‘America First’ policy and business uncertainty linked to Britain’s delayed departure from the European Union.

It is also reported that German car companies are having trouble adjusting to stricter regulation after an emissions-cheating scandal and managing a broader shift away from combustion engines towards electric cars.

Indeed, the automotive industry body VDA said that it expected car sales to remain sluggish next year and that companies would cut more job cuts as a result.