Orders for Digital Industries declined due to lower demand in the short-cycle factory automation and motion control businesses, which faced increasingly adverse market conditions during the course of the fiscal year, particularly in the automotive and machine building industries. These declines were only partly offset by clear growth in the process automation business and a moderate increase in the software business, which was due to positive currency translation effects and new volume from recent acquisitions, particularly including Mendix.
The latter two businesses were also the drivers for revenue growth, as year-overyear revenue growth for the short-cycle businesses in the first half of fiscal 2019 gave way to declines in the second half. On a geographic basis, orders declined in the regions Europe, C. I. S., Africa, Middle East and in the Americas, only partly offset by an increase in the Asia, Australia region. Revenue rose in all three reporting regions. The software business strengthened its contribution to Adjusted EBITA with a double-digit increase.
Higher expenses related to new cloud-based offerings were partly offset by a € 50 million gain from the sale of an equity investment. The process automation business showed a moderate increase in Adjusted EBITA, due mainly to higher revenue. Nevertheless, Adjusted EBITA for Digital Industries overall came in slightly lower year-over-year due to clear declines in the short-cycle businesses. Severance charges were € 92 million in fiscal 2019, up from € 75 million a year earlier. Digital Industries’ order backlog was € 5 billion at the end of the fiscal year, of which € 4 billion are expected to be converted into revenue in fiscal 2020.
Digital Industries achieved its results in a market environment that lost momentum in the course of fiscal 2019. In particular, demand for investment goods eroded notably in the second half of the fiscal year. All regions were impacted by the slowdown, and countries with strong focus on investment goods and strong export ties to China suffered notably. While process industries still benefited from positive development of raw material prices, discrete industries faced headwinds from low demand including destocking effects. The automotive industry was hit by production cuts in Europe and weak demand in China. This, among other factors, also impacted the machine building industry, particularly affecting customers in Germany and Japan.
Production
growth in the pharmaceutical and chemicals industries flattened
during the course of fiscal 2019, due in part to spillover effects from the automotive industry on related chemicals segments. The food and beverage industry grew modestly and global electronics and semiconductor production expanded but prices were under pressure. For fiscal 2020, the market environment for Digital Industries is expected to weaken further. Manufacturing investments are expected to decrease at least moderately but then begin to stabilize in the second half of fiscal 2020. An overall decline in investment sentiment caused by global trade tensions, among other factors, dampens short-term expectations and fuels increasing cautiousness for investments globally. A weakening of growth in China could lead to spillover effects in other Asian
countries and also in Europe.
Table:
 |  | Fiscal year |  | % Change
(in millions of €) | 2019 | 2018 | Actual | Comp.
Orders | 15,944 | 16,287 | (2) % | (4) %
Revenue | 16,087 | 15,587 | 3 % | 2 %
therein: software business | 4,039 | 3,560 | 13% | 8%
Adjusted EBITA | 2,880 | 2,898 | (1) % | 
Adjusted EBITA margin | 17.9 % | 18.6 % |  | 


Question: What was the rationale for decline in the orders for digital industries?
Answer: due to lower demand in the short-cycle factory automation and motion control businesses, which faced increasingly adverse market conditions during the course of the fiscal year, particularly in the automotive and machine building industries.