German factory orders stagnate in February, missing rebound forecasts

Drop in metal, electrical, and pharma sectors offsets gains in transport and machinery

By Tuba Sahin

German factory orders remained unchanged in February compared to the previous month, falling short of market expectations for a rebound in industrial demand, according to official data released Friday.

Analysts had projected a 3.4% month-on-month increase, but figures from the Federal Statistical Office (Destatis) showed no growth, highlighting continued weakness in Europe’s largest economy.

The stagnation was largely driven by a sharp 7.4% monthly decline in new orders for fabricated metal products (excluding machinery and equipment). The electrical equipment sector also posted a 5.3% decrease, while the pharmaceutical industry saw orders fall by 5.9%.

In contrast, some sectors showed positive momentum. Orders in the machinery and equipment industry rose 3.4%, and the manufacture of other transport equipment—including aircraft, ships, trains, and military vehicles—saw a 3.8% increase.

Germany's vital automotive industry recorded a modest gain of 0.6%, offering a slight boost to the overall figure.

Year-on-year, adjusted for calendar effects, factory orders declined by 0.2% in February.

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