German factory orders slide in December, undercut forecasts

BERLIN – Official data show that German factory orders were down 1.6 per cent in December compared with the previous month, a worse-than-expected performance that adds to worries about slowing growth in Europe’s biggest economy.

Economists had expected a 0.3 per cent increase.

However, the Economy Ministry said Wednesday that orders were stronger than previously thought in November — slipping by 0.2 per cent rather than the 1 per cent initially reported.

Orders were led lower in December by a 5.5 per cent fall in demand from outside the 19-nation eurozone. Domestic orders dropped 2.3 per cent, but orders from other eurozone countries rose 3.2 per cent.

The Economy Ministry said that, for the entire fourth quarter, orders rose a modest 0.3 per cent.

Last week, the government slashed its 2019 economic growth forecast from 1.8 per cent to 1 per cent.