German factory orders fell sharply in February

Factory orders in Germany fell sharply in February. According to figures from the German Federal Statistical Office, orders fell by 1.4 percent on a monthly basis in the second month of this year. The decline was less pronounced than expected, as economists generally expected a 2.5 percent decline.

In January orders for German factories rose sharply. An increase of 5.5 percent was recorded for that month. On an annual basis, German factory orders rose 1.5 percent in February, after declining by a revised 0.8 percent a month earlier.

According to ING economists, the figures show that the international consequences of the new corona virus in February were not as bad as expected. At that time, China in particular was still in the grip of the virus. The decline was largely due to declining foreign demand. In the March figures, economists expect to see the consequences of the European virus outbreak.