German Factory Order Decline Exceeds Expectations
Germany's factory orders declined more than expected in December
largely due to weak demand from euro area amid strict lockdown
restrictions, official data from Destatis revealed Friday.
Orders were down 1.9 percent on month, reversing a 2.7 percent
rise in November, Destatis reported. This was bigger than the
economists' forecast of -1 percent and marked the first drop since
Domestic orders dropped moderately by 0.9 percent. Meanwhile,
foreign orders declined 2.6 percent due to a 7.5 percent fall in
demand from the euro area. Orders from other countries grew 0.5
Manufacturers of intermediate goods reported a monthly increase
of 0.8 percent. Orders for consumer goods advanced 6.4 percent. On
the other hand, orders for capital goods dropped 4.6 percent on the
New orders decreased due to the tightened lockdown but it
exceeded the level before the outbreak of the pandemic in the
fourth quarter of 2019 by almost 5 percent, the economy ministry
Excluding major orders, real new orders in manufacturing were
2.0 percent lower than in the previous month.
On a yearly basis, industrial orders growth eased to 6.4 percent
in December from 6.7 percent in the previous month.
Today's data showed that the stricter lockdown measures since
mid-December, as well as the Christmas break, have finally hit
German industry, Carsten Brzeski, an ING economist, said.
At face value, this only looks like a temporary breather, the
economist noted. However, with the Chinese New Year break as well
as ongoing lockdowns in many main trading partner countries,
setbacks for industry seem hard to avoid.
Real turnover in manufacturing advanced 1.9 percent
month-on-month in December after rising 1.1 percent in