German factory orders fall sharply in April

BERLIN – German factory orders dropped sharply in April, falling 2.1 per cent over the previous month as foreign demand plummeted.

The Federal Statistical Office reported Wednesday that domestic orders fell slightly in April, dropping 0.2 per cent over March, while foreign orders dropped 3.4 per cent according to seasonally adjusted figures.

Industrial order figures are notoriously volatile and April’s overall 2.1 per cent drop followed a 1.1 per cent rise in March which was bolstered by strong foreign demand.

ING economist Carsten Brzeski also noted that April figures would have been partially affected by Easter holidays and that the overall trend remains strong.

He says “order books are still richly filled to ensure good production data in the months ahead and earlier episodes have shown that vacation and holiday driven delays will eventually be recovered.”