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Factory orders in Germany, Europe's largest economy, drop on weak domestic demand

BERLIN – German factory orders fell more than expected in November, hurt by a drop in demand domestically and from non-eurozone countries.

The Federal Statistical Office reported Thursday that industrial orders were down a seasonally-adjusted 2.4 per cent in November over the previous month. Analysts had expected a 0.8 per cent decline.

Foreign orders were down 0.7 per cent overall, after eurozone orders rose 2.7 per cent but those from non-euro countries dropped 2.6 per cent. Domestic demand dropped 4.7 per cent.

After two previous months of strong increases, however, UniCredit economist Andreas Rees says there is no reason for panic, noting orders were still up 0.9 per cent over the last three months over the previous three-month period.

He says “the most important message is that we have to be a bit more patient.”