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German industrial orders down by the most in decade

German industrial orders down by the most in decade

German industrial orders fell unexpectedly in December due to weak demand from other Eurozone countries, suggesting that a decline in manufacturing would continue to curb overall growth in Europe's largest economy.

The Bureau of Statistics said that contracts for the purchase of manufactured goods in Germany decreased by 2.1 percent from the previous month, which considered the biggest decline since February, compared to forecasts of 0.6 percent increase. November’s reading was revised up to an 0.8 percent drop from an earlier 1.3 percent decline.

On the annual basis, factory orders were down by the most in decade in December, as shown in the following graph.

The Ministry of Economy said in a commentary on the figures that strong fluctuations in foreign demand for large transport equipment accounted for about a third of the decline in demand in December.

"Overall, the outlook for the industrial economy remains low,” the Economy Ministry said.

Export-dependent manufacturers in Germany are suffering from declining demand from abroad as well as a haze of activity linked to trade disputes and Britain's decision to secede from the European Union.

Meanwhile, the euro currency traded slightly higher versus the U.S. dollar at 1.1003, set for its first daily gain in four sessions.

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