German Factory Orders Down
World Economy

German Factory Orders Down

German industrial orders fell less than expected in January with a spike in orders from eurozone countries cushioning a drop in demand from domestic customers, data showed on Monday.
The figures gave some relief after surveys had painted a gloomy outlook for manufacturing in Europe’s largest economy as exporters face trouble in major markets, such as an economic slowdown in China and recession in Russia and Brazil, CNBC reported.
“This could have been worse in light of the bad news and turbulence on stock markets at the beginning of the year,” said Dirk Schlotboeller, economist at Germany’s DIHK Chambers of Commerce.
Orders for ‘Made in Germany’ goods were down 0.1% on the month, the economy ministry said. That compared with a Reuters consensus forecast for a decline of 0.3%.
Domestic demand fell 1.6% while foreign orders rose 1%, with orders from the eurozone up 7.5%.
The figure for December was revised up to a drop of only 0.2% from a previously reported fall of 0.7%. “Over the two months, the impulses are from abroad,” the ministry said, adding that strong foreign demand showed the German industrial sector’s competitiveness. “However, expectations in industry have become considerably overcast and signal only a modest economic upswing.”
Caution among buyers of German goods around the world has been forcing some manufacturers to postpone investments, threatening to drag German growth below the government’s 1.7% forecast for this year.
Schlotboeller ascribed the strong rise in orders from eurozone countries to the drop in oil prices, which had had the effect of a stimulus package. “The real disappointment is the further decline of domestic orders,” he added.
In 2015, robust private consumption and higher state spending on infrastructure and refugees drove an economic expansion of 1.7%.

Short URL : https://goo.gl/MLPpZ7
  1. https://goo.gl/2CzjdA
  • https://goo.gl/Yh8MOx
  • https://goo.gl/PmGMqT
  • https://goo.gl/jfH24R
  • https://goo.gl/4wiqHa

You can also read ...

In a retaliatory move, President Recep Tayyip Erdogan’s government on Wednesday announced higher tariffs on some US imports, namely on passenger cars (120%) and leaf tobacco (60%).
Turkey has raised tariffs on some US imports, including...
China Challenges US Solar Panel Duties
China says it is challenging a US tariff hike on solar panels...
File picture of Kim Jong-un (L) and Moon Jae-in at the truce village  of Panmunjom, South Korea.
South Korea President Moon Jae-in on Wednesday offered a bold...
World trade volume growth peaked in January at almost 5.7% year-on-year but nearly halved to less than 3% by May.
Cyclical indicators point to slower and more uneven growth in...
Nigeria CPI Drops to 11.14 Percent
Nigeria’s National Bureau of Statistics says the consumer...
Sudanese Hit by Bread Shortages
Bread shortages have hit Sudan, with wheat traders blaming a...
Moody’s Predicts Slower Fiscal Progress in S. Africa
South Africa’s fiscal consolidation will be slower than the...
Transport tickets and fuel have driven up costs for consumers.
Inflation in the UK climbed in the month of the July, as had...