FOREX TradingCharts.com

Financial News: German Factory Orders Fall Unexpectedly On Foreign Demand

German Factory Orders Fall Unexpectedly On Foreign Demand

02/06/2020 - 06:38:00 (RTTNews)

(RTTNews) - Germany's factory orders decreased unexpectedly at the end of 2019, reflecting the weakness in foreign demand, data from Destatis revealed Thursday.

Factory orders fell 2.1 percent month-on-month in December, following a revised 0.8 percent drop in November. This was the biggest decrease since February and confounded the expected growth of 0.7 percent.

Domestic orders grew 1.4 percent, while foreign demand decreased 4.5 percent in December. Orders from the euro area plunged 13.9 percent. On the other hand, demand from other countries grew 2.1 percent.

On a yearly basis, new orders slid 8.7 percent versus a 6 percent fall in November. Economists had forecast a decrease of 6.6 percent.

In the fourth quarter, manufacturing orders were down 0.5 percent from the preceding three months.

The economy ministry said the outlook for industrial activity remains subdued.

Further, data showed that manufacturing turnover decreased 1.3 percent on a monthly basis, much bigger than the 0.4 percent fall seen in November. Despite some tentative positive signs from soft data that point to a bottoming out of the manufacturing slump, the hard reality looks completely different, Carsten Brzeski, an ING economist, said.

The sheer impact of coronavirus on the Chinese economy will be enough to affect the German industry and delay any rebound, the economist noted. Particularly the German automotive and engineering industries' supply chains are well integrated and dependent on China.

The significant decline in orders suggests that industrial production is likely to decline again in the first quarter, especially as the outbreak of the coronavirus in China will probably prove as an additional burden, Ralph Solveen, an economist at Commerzbank, said.

Destatis is slated to issue Germany's industrial production for December on Friday. Economists forecast output to drop 0.2 percent on month, in contrast to a 1.1 percent rise in November.

The Purchasing Managers' survey from IHS Markit, released on Thursday, showed that Germany's construction sector carried strong momentum in January. The Purchasing Managers' Index rose to 54.9 from 53.8 in December.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2020 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Fed Minutes Signal Interest Rates To Remain Unchanged For Some Time (37 min(s), 44 sec(s) ago)
(RTTNews) - Leaving interest rates at their current levels is likely to remain appropriate for som ...Full Story»

IMF Says Coronavirus Poses New Threat To Fragile Global Economic Recovery (02 hr(s), 09 min(s), 44 sec(s) ago)
(RTTNews) - Global economy is set for a fragile and shallow recovery and the coronavirus outbreak ...Full Story»

Belgium Consumer Confidence Improves For Second Month (03 hr(s), 47 min(s), 44 sec(s) ago)
(RTTNews) - Belgian consumers were less pessimistic for a second straight month in February, surve ...Full Story»

Turkish Central Bank Cuts Rates Again (03 hr(s), 59 min(s), 44 sec(s) ago)
(RTTNews) - Turkey's central bank cut interest rates for a sixth policy session in a row, citi ...Full Story»

U.S. Housing Starts Pull Back After Reaching 13-Year High (05 hr(s), 29 min(s), 44 sec(s) ago)
(RTTNews) - A report released by the Commerce Department on Wednesday showed a pullback in new res ...Full Story»

Eurozone Current Account Surplus Grows (05 hr(s), 36 min(s), 44 sec(s) ago)
(RTTNews) - Euro area current account surolus grew in December after dropping in the previous mont ...Full Story»

U.S. Producer Prices Climb 0.5% In January, Much More Than Expected (05 hr(s), 45 min(s), 44 sec(s) ago)
(RTTNews) - Producer prices in the U.S. increased by much more than anticipated in the month of Ja ...Full Story»

U.S. Housing Starts Pull Back Less Than Expected In January (06 hr(s), 21 min(s), 44 sec(s) ago)
(RTTNews) - A report released by the Commerce Department on Wednesday showed a pullback in new res ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Fed Minutes Signal Interest Rates To Remain Unchanged For Some Time

02/19/2020 - 14:31 PM (RTTNews)
(RTTNews) - Leaving interest rates at their current levels is likely to remain appropriate for som ...Full Story>>

IMF Says Coronavirus Poses New Threat To Fragile Global Economic Recovery

02/19/2020 - 12:59 PM (RTTNews)
(RTTNews) - Global economy is set for a fragile and shallow recovery and the coronavirus outbreak ...Full Story>>

Belgium Consumer Confidence Improves For Second Month

02/19/2020 - 11:21 AM (RTTNews)
(RTTNews) - Belgian consumers were less pessimistic for a second straight month in February, surve ...Full Story>>

Turkish Central Bank Cuts Rates Again

02/19/2020 - 11:09 AM (RTTNews)
(RTTNews) - Turkey's central bank cut interest rates for a sixth policy session in a row, citi ...Full Story>>

U.S. Housing Starts Pull Back After Reaching 13-Year High

02/19/2020 - 09:39 AM (RTTNews)
(RTTNews) - A report released by the Commerce Department on Wednesday showed a pullback in new res ...Full Story>>
Copyright © 2020. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.