German Factory Orders Unexpectedly Decline on Exports Slowdown

German factory orders unexpectedly fell in February in a sign that a global trade slowdown is weighing on Europe’s largest economy.

Orders, adjusted for seasonal swings and inflation, dropped 1.2 percent from the prior month, when they rose a revised 0.5 percent, data from the Economy Ministry in Berlin showed on Tuesday. The reading, which is typically volatile, compares with a median estimate for an increase of 0.3 percent in a Bloomberg survey. Orders climbed 0.5 percent from a year earlier.

While Germany corporate confidence improved last month because of robust domestic demand, exporters are struggling with a China-led slowdown in emerging markets. Bundesbank warned last month that the nation’s growth momentum could slow in the second quarter as weakening exports prompt companies to curb output and hiring.

“Orders in the manufacturing sector developed slowly at the beginning of the year,” the ministry said in a press release. “This reflects the sluggish development of the global economy.”

Bloomberg

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.