German Factory Orders Fall For First Time In 4 Months
January 07 2018 - 10:41PM
RTTF2
Germany's factory orders declined for the first time in four
months in November as both domestic and foreign demand
deteriorated.
Factory orders decreased by a larger-than-expected 0.4 percent
month-on-month, reversing a revised 0.7 percent rise in October,
data from Destatis revealed Monday.
Orders were forecast to drop 0.2 percent and this was the first
decrease in orders since July.
Excluding major orders in manufacturing, new orders grew 1.8
percent from the previous month.
Domestic and foreign orders fell 0.4 percent and 0.5 percent,
respectively. New orders from the euro area climbed 0.7 percent,
while that from other countries decreased 1.2 percent.
Orders for intermediate goods climbed 2 percent and demand for
consumer goods gained 3.2 percent. Meanwhile, demand for capital
goods showed a decline of 2.3 percent.
In November, fluctuations in major orders were the main reason
for the negative result, the economy ministry said.
Overall orders in the second half of 2017 developed extremely
dynamically. This lays the foundation for a strong start to the
year in industry, the ministry noted.
On a yearly basis, industrial orders expanded 8.7 percent in
November, faster than the 8.4 percent increase economists had
forecast.
Data showed that manufacturing turnover increased 4.6 percent on
a monthly basis in November, in contrast to a 2.1 percent decrease
in October.
In fact, the decrease in orders came after three consecutive
increases and is rather of a technical nature than any sign of
weakness, Carsten Brzeski, an ING economist, said.
With inventories low and capacity utilization at its highest
level since 2008, there is little reason to get concerned, the
economist noted. The general trend for industrial production in
Germany remains positive.
Destatis is slated to publish industrial output figures on
January 9. Economists forecast production to grow 1.8 percent in
November.
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