German factory orders rebound strongly

(Sharecast News) - Factory orders in Germany rebounded strongly in December after two months of declines, according to data out on Friday from Destatis, the Federal Statistical Office. Price-adjusted new orders in manufacturing were up 6.9% over the month, following a revised 5.2% slump in November.

That was well ahead of the 2.0% increase expected by economists.

The stronger-than-expected result was mainly due to a huge 55.5% surge in new orders for transport equipment (aircraft, ships, trains, military vehicles) due to several large-scale orders. Machinery and equipment orders were also up 8.6% in December, tempered slightly by a 3.2% drop in automotive orders.

When large-scale orders are excluded, factory orders increased by 2.2% over the month.

Domestic orders were 14.6% higher, mainly due to the large-scale orders for transport equipment, while foreign orders rose 1.4%.

Despite December's strong outturn, for 2024 as a whole, factory orders were down 3% on a calendar-adjusted basis, continuing a downward trend seen since 2021.