Data published by the Federal Statistical Office (Destatis) showed that in February, factory orders remained unchanged after declining by 5.5% in January (revised from -7.0% due to late reporting of data in the manufacture of basic metals, the manufacture of machinery and equipment and the automotive industry). Economists had expected a 3.5% increase. Meanwhile, over the last three months (through February), factory orders fell by 1.6% compared to the previous three months. When large-scale orders are excluded, new orders decreased by 0.2% compared to January and increased by 0.4% q/q over a three-month period.
Destatis said that in February, sharply opposite trends were observed in certain sectors of the economy. The decline in new orders in the manufacture of fabricated metal products, except machinery and equipment (-7.4% m/m), the manufacture of electrical equipment (-5.3% m/m) and the pharmaceutical industry (-5.9% m/m) had a negative impact on the overall result. By contrast, the increase in new orders in the manufacture of machinery and equipment (+3.4% m/m), the manufacture of other transport equipment (aircraft, ships, trains, military vehicles; +3.8% m/m) and in the automotive industry (+0.6% m/m) had a positive effect on overall performance.
As for sectors, new orders fell in the intermediate goods sector (-1.3% m/m) and in the consumer goods sector (-5.2% m/m). However, orders increased in the capital goods sector (+1.5% m/m).
Meanwhile, foreign orders increased by 0.8% m/m, while new orders from the euro area declined by 3.0% m/m. New orders from the rest of the world increased by 3.4% m/m, while domestic orders decreased by 1.2% m/m.