German factory orders drop in January despite bump in demand from rest of the Eurozone
German factory's received fewer orders in January compared with the month before, according to figures released this morning.
New orders dropped 0.1 per cent with a 1.6 per cent drop in domestic orders offsetting a one per cent climb in foreign orders, German statistical office Destatis said.
Orders from other Eurozone countries jumped 7.5 per cent while orders from other countries fell 2.7 per cent. Compared with the same month last year, orders from Eurozone countries are up nearly seven per cent while orders from outside the Eurozone have declined two per cent.
"Looking through such short-term volatility, the orders data suggest that industrial output should soon stabilise after a decline in the autumn 2015," said economist Holger Schmieding from investment bank Berenberg.
"Unless markets were to sell off sharply again or unless political risks were to materialise badly, the uptrend that had prevailed until July 2015 could then resume again in late spring, paving the way for a return to trend growth in German – and Eurozone GDP – by mid-2016."