Germany Factory Orders Decline For First Time In 4 Months

germanyfactoryorders oct05 06apr22 lt

Germany factory orders declined for the first time in four months in February largely driven by the fall in foreign demand, data from Destatis revealed on Wednesday.

Factory orders decreased 2.2 percent on a monthly basis in February, in contrast to the 2.3 percent increase in January. Economists had forecast a marginal fall of 0.2 percent. This was the first decrease since October 2021.

At the same time, annual growth in overall new orders eased sharply to 2.9 percent from 8.2 percent in January.

New orders from foreign countries decreased 3.3 percent from January. Within this foreign demand, orders from eurozone were down 3.3 percent and that from non-eurozone economies slid 3.4 percent. At the same time, domestic orders logged monthly fall of 0.2 percent.

Data showed that the producers of capital goods recorded a decrease of 2.8 percent. Producers of intermediate goods saw new orders fall 1.9 percent. Regarding consumer goods, orders went up 0.7 percent.

Further, data showed that domestic turnover fell 1.4 percent in February, reversing a revised 1.6 percent increase in January.

The economy ministry said the outlook for factory orders is currently muted due to the uncertainty caused by the war in Ukraine.

Elsewhere, Germany's construction Purchasing Managers' survey showed that the sector registered a sharp slowdown in activity growth in March as Ukraine war dampened demand, prices as well as supply.

The S&P Global construction Purchasing Managers' Index fell to 50.9 in March from a two-year high of 54.9 in February. A score above 50.0 indicates expansion in the sector.

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