Berlin, Oct 7 (IANS): Against the background of the energy crisis, Germany's industrial economy was showing "clear signs of braking," the Ministry for Economic Affairs and Climate Action (BMWK) said in a statement.

Industrial orders in August declined 2.4 per cent month-on-month, BMWK cited the statistics of the Federal Statistical Office (Destatis) as saying on Thursday, Xinhua news agency reported.

Among the industrial orders, domestic orders for Germany's industry in August fell by 3.4 per cent in September, while foreign orders went down by 1.7 per cent, according to the Ministry.

"The subdued outlook for the remainder of the year is also reflected in a cooled business climate and cautious export expectations," BMWK added.

Nevertheless, Germany's large automotive and mechanical engineering industries still recorded increases in orders in August, up 4.7 per cent and 3.8 per cent, respectively, the Ministry noted.

A spokesperson for the German Association of the Automotive Industry (VDA) told Xinhua that this increase in orders is a result of "catch-up effects" in the wake of bottlenecks in supply chains. However, shortages of inputs and intermediates, as well as "general uncertainty" due to the Russia-Ukraine conflict, continue to have a "dampening effect on the development of the market and production," the VDA spokesperson added.

Besides the German car industry, manufacturers of machinery and equipment have also been particularly affected by supply shortages. According to the ifo Institute for economic research, three out of four companies in both sectors reported bottlenecks in September.