German Factory Orders Slump in January

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.

Bloomberg

Sterling Getting Pounded

DAX Edges Higher Despite Dismal German Mfg. Report

MS

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Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam