German Industrial Orders Declining More than Expected

German Industrial Orders Declining More than Expected

Data released on Wednesday indicated that German industrial orders decreased more than expected in February; this resulted from reduced demand from overseas, supply bottlenecking, soaring energy prices, and anxiety about Russia’s invasion of Ukraine dampening manufacturing output. According to data from the Federal Statistics Office, industrial goods orders declined 2.2 percent in seasonally adjusted terms in February; the drop came following an upwardly revised gain of 2.3 percent.

In February, a Reuters survey of analysts predicted a 0.2 percent dip from the previous month.

A Loon Into the Industrial Decline 

According to the report, foreign orders declined by 3.3 percent. Demand for intermediate and capital products fell by 1.9 percent and 2.8 percent, respectively. Orders for consumer products increased by 0.7 percent. “The strong surge in January should be regarded in the light of the dip in February,” the economy ministry stated.

In a note, Commerzbank’s chief economist Joerg Kraemer said the dip was “no drama” after a big spike in demand in January. Still, the primary issues for producers were raw material shortages and supply bottlenecks.