Significant Decline in German Factory Orders

In a recent report by Germany's Federal Statistical Office Destatis, it was revealed that seasonally and price-adjusted new factory orders in Germany experienced a significant 7% decrease in January compared to the previous month. This downturn also reflects a 2.6% decline when compared to the same month in the previous year.

Domestic and Foreign Orders Both Hit

The report further detailed a 13.2% dip in domestic orders and a 2.3% drop in foreign orders from December. Notably, new orders from the euro area decreased by 2.5%, while those from outside the Eurozone fell by 2.3%.

Sector-Wise Impact

Leading the decline was the manufacture of machinery and equipment sector, which saw a sharp 10.7% decrease. Additionally, new orders for intermediate goods, consumer goods, and capital goods also experienced downturns, with decreases of 1.4%, 2%, and 11% respectively in January month-on-month.