German Industrial Orders Drop 11.1 Percent in January
German industrial orders fell 11.1% in January as production dropped 0.5%. The decline was primarily driven by lower output in fabricated metal products.
Industrial demand in Germany experienced a sharper-than-expected contraction at the start of the year, as volatile large-scale orders retreated from a strong December peak. According to data released by the federal statistics office on Monday, industrial orders fell by 11.1% in January on a seasonally and calendar-adjusted basis. This figure significantly overshot the 4.5% decline predicted by economists in a Reuters poll.
Despite the steep headline drop, the underlying data suggests a more stable environment for smaller contracts. When large-scale orders are removed from the calculation, the decline was limited to 0.4% in January. This follows a period in December when German industrial orders recorded their most substantial growth in two years.
