Photo: VW ID.3 assembly (ft.com)
Orders for “Made in Germany” goods unexpectedly fell in April for the fourth consecutive month, underscoring the difficulties facing Europe’s largest economy, DPA reports.
The 0.2% decline in industrial orders in April compared to the previous month, while smaller than in previous periods, is still a sign of challenges facing the German economy. It also came in below the expectations of analysts, who had forecast growth of 0.5%.
However, excluding large orders, industrial orders rose 2.9% in April compared to the previous month. On the other hand, orders for transport equipment fell by 15.4%.
“Together with indicators showing an increase in confidence, the data released on Thursday gives hope that the downward trend of the past two years is about to end,” said economist Ralf Solvin of Commerzbank.
Orders from the eurozone fell by 1.4%, while those outside the eurozone rose by 0.6%. In addition, domestic orders decreased by 0.3%. On a year-over-year basis, orders for “Made in Germany” goods fell 1.6% in April after falling 2.4% in March.
A significant drop in industrial activity in Germany affects the entire economy, analysts warn.
