Germany's factory orders fall most in nearly 3 years

By Tuba Ongun

ANKARA (AA) – Factory orders in Germany posted its fastest decline in 35-months in March, led by a weak demand for vehicle construction, according to data released on Friday.

New orders in manufacturing plummeted 10.7% from a month ago in March, the strongest decline since April 2020 as a result of the COVID-19 pandemic, the Federal Statistical Office (Destatis) said.

The market estimate was a 2.2% monthly decrease for March, shifting from a downwardly revised 4.5% rise in February.

New orders in miscellaneous vehicle construction (construction of ships, railed vehicles, aircrafts, spacecrafts and army vehicles) plunged 47.4% in March versus the previous month.

Motor vehicles and motor vehicle parts (down 12.2% month-on-month) also pushed the main reading downwards.

New domestic orders dove 6.8% in March, while total foreign orders dropped 13.3% in the same period.

New orders from the euro area sank 10.8% from a month ago, and countries outside the single currency zone posted a 14.8% fall in March.

Producers of capital goods posted the largest decrease with 14.1%, followed by intermediate goods with 7.5%. On the other hand, consumer goods orders rose 1.2%.

On an annual basis, new factory orders tumbled by a calendar-adjusted 11.0% compared to March 2021.