February 06, 2023 07:20 GMT
German Factory Order Boost Masks Underlying Weakness
GERMANY DEC FACTORY ORDERS +3.2% M/M (FCST +2.0%); NOV -4.4%r M/M
GERMANY DEC FACTORY ORDERS -10.1% Y/Y (FCST -11.6%); NOV -10.2%r Y/Y
- German manufacturing new orders recorded a robust end to Q4, expanding by +3.2% m/m (vs +2.0% expected), largely rebounding from the -4.4% m/m contraction in November.
- Large-scale orders, especially in electricity manufacturing, engines, vehicles and aircraft machinery, accounted for the bulk of the December growth.
- The headline figure masks underlying weakness, as excluding large-scale orders a -0.6% m/m decline was recorded. The -3.3% m/m fall in consumer goods orders reiterates the weak demand environment.
- New orders were -10.1% y/y lower than December 2021, where strong post-covid demand persisted and remained a modest +1.2% above pre-covid Dec 2019 levels. China’s recent reopening measures will lift export orders, signalling a more robust start to 2023 in data to come.
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