Significant Decline in German Factory Orders

In a concerning economic signal, Germany's Federal Statistical Office Destatis reported a 7% decrease in seasonally and price-adjusted new factory orders in January compared to the previous month. This downturn represents a 2.6% fall from the same month the previous year, highlighting ongoing challenges in the manufacturing sector.

Domestic and Foreign Orders Both Decline

Domestic orders saw a significant drop of 13.2% from December, while foreign orders decreased by 2.3%. Notably, orders from within the euro area fell by 2.5%, and those from outside the Eurozone by 2.3%, indicating widespread challenges across markets.

Sector-Specific Downturns

The machinery and equipment manufacturing sector was the hardest hit, with a sharp 10.7% decline. Additionally, intermediate goods orders fell by 1.4%, and consumer and capital goods orders decreased by 2% and 11%, respectively, underscoring the broad-based nature of the downturn.