WORLD German factory orders fall more than expected in December

WORLD

German factory orders fall more than expected in December

AP

16:17, February 05, 2021

German factory orders fell more sharply than expected in December, suggesting recent coronavirus lockdown measures are starting to impact industry in Europe's largest economy, new statistics showed Friday.

Lights of the city are reflected in the river Main in Frankfurt, Germany, Thursday, Feb. 4, 2021. In background the buildings of the banking district. (Photo: AP)

Industrial orders fell 1.9% in December over the previous month, following a slightly upwardly revised 2.7% increase in November, the Federal Statistical Office reported.

Economists had forecast a 1% decline for December.

Domestic orders decreased by 0.9% while foreign orders dropped by 2.6% in December. New orders from the eurozone fell 7.5%, while those from other countries increased by 0.5%.

The decline was the first in Germany after seven consecutive monthly increases, noted ING economist Carsten Brzeski.

German industry had remained almost unharmed by the November lockdown," he said in a research note. “Today’s data, however, show that the stricter lockdown measures since mid-December, as well as the Christmas break, have finally hit German industry.”

Compared with February 2020, the month before the first restrictions were imposed in Germany due to the coronavirus pandemic, new orders in December 2020 were 2.6% higher in seasonally and calendar adjusted terms, the statistical office said.

Related Stories

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue