Germany sees unexpected jump in factory orders
February 6, 2024
Germany’s manufacturing sector reported an unexpected jump in demand in December, according to official data released on Tuesday.
The news gives hope that the slowdown in production in the country may be coming to an end.
What the numbers show
New orders – an indicator of future economic health – rose 8.9% from the previous month, federal statistics office Destatis said..
The number is significant given that demand in November stagnated when analysts expected it to increase.
Destatis said the surprise recovery was driven by some high-value items, with production of non-car vehicles – including planes and trains – recording a 110% jump in orders.
There was also strong growth in the manufacturing of electrical equipment, as well as metal products and pharmaceuticals.
However, orders for motor vehicles and chemicals declined.
ING bank economist Carsten Brzeski said the surge in orders “gives hope that the downward trend in German industry is finally bottoming out.”
However, “many more of these positive data” will be needed “to signal any significant recovery in the economy”, he added.
Source: DW
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.