German factory orders plunged at the steepest pace in eight years as demand for investment goods weakened.
Orders, adjusted for seasonal swings and inflation, fell 7.4 percent from December, when they increased 5.2 percent, data from the Economy Ministry in Berlin showed on Tuesday. That’s the biggest drop since January 2009. The typically volatile reading compares with a median estimate for a 2.5 percent decline in a Bloomberg survey. Orders were down 0.8 percent from a year earlier.
The report breaks a string of data that had pointed to a buildup in momentum and serves as a reminder that Europe’s largest economy isn’t fully insulated against risks. Last month, the Bundesbank predicted growth would pickup at the start of 2017, supported by domestic demand and a stronger global outlook.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.