Official data show that industrial orders in Germany fell more than expected in January, another worrying sign for the key manufacturing sector in Europe's largest economy, AFP reports.
New orders, which are closely watched as a gauge of future business activity, fell 11.3% from the previous month, federal statistics office Destatis said.
Analysts polled by financial data firm FactSet had expected a 6% drop.
Orders unexpectedly rose 12 % in December, and January's negative figure is partly explained by the month-on-month comparison.
The economy ministry said orders from the eurozone fell by more than 25% after strong December data, while demand from other countries increased slightly.
The decline in January was spread across most sectors, with orders for electrical equipment, metals and pharmaceuticals falling particularly sharply, the ministry said.
Destatis highlighted that in a "less volatile" three-month comparison, new orders from November to January were 2.3% higher than the previous three months.
Bank LBBW economist Jens-Oliver Niklasch said the three-month comparison was "not a bad figure once the initial shock of January is overcome".
However, he added that it "is still not good enough to reverse the downward trend of the last few quarters. The economy is still in crisis."
High inflation, expensive energy resources and weaker demand from the key market - China - have weighed on Germany's key manufacturing sector in recent months.
The industrial slowdown has contributed to a broader downturn in the German economy, which contracted by 0.3 % in 2023.
The Bundesbank expects a modest recovery to begin in 2024, forecasting growth of 0.4% as inflation eases and demand picks up. / BGNES
